According to a consent order, LPL agreed to pay Illinois Securities Department $2 million for failing to maintain adequate books and records involving variable annuity exchanges, also known as 1035 exchanges. As a result, between 2009 and 2013, LPL allegedly failed to enforce its supervisory system and procedures in connection with the documentation of certain salespersons’ variable annuity exchange activities.
LPL’s BrokerCheck report indicates the firm was also ordered to pay nearly $820,000 in restitution.
According to InvestmentNews, LPL spokesperson Betsy Weinberger wrote that the firm is “instituting enhanced procedures” to ensure surrender charges are accurately recorded and that advisors are adequately documenting variable annuity recommendations.
Brokerage firms have a supervisory responsibility to adequately monitor activity and transactions of their employees. If a firm fails in their supervisory duty or violates state/federal securities law they may be liable for investment losses.
If you incurred investment losses on 1035 exchanges or annuity sales made through LPL Financial, The White Law Group may be able to help. For a free consultation with a securities attorney, please call (312)238-9650.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, IL and Vero Beach, FL. To learn more about the firm, visit www.WhiteSecuritiesLaw.com.