Another Black Eye for LPL Financial | Cold Spring Advisory Group

Another Black Eye for LPL Financial

March 18, 2015

LPL Financial, the largest independent broker-dealer organization in the US has one-hundred disclosure events on its Financial Industry Regulatory Authority (FINRA) BrokerCheck report. Since May 2013, the firm has been fined over $11 million and has been ordered to pay in excess of $1.1 million in disgorgement/restitution to its clients.

LPL has repeatedly been fined for supervisory failures, failing to adequately maintain books and records, failure to detect fraudulent and improper conduct, and failure to follow FINRA suitability guidelines.

On March 3rd 2015, in a move that surprised many in the industry, Robert Moore announced he was leaving LPL Financial to join Legal & General Investment Management America as CEO. Mr. Moore's departure was the latest in a string of high level executives to leave in the past two years. Frank Congemi, an LPL adviser was quoted as saying, "This is a surprise. He was one of the few people I could go to, with confidence, in the company with a problem and know it would be handled. It's another black eye for the firm."