Friday, May 5, 2017

Massachusetts Regulator Fines LPL $1 Million for Failing to Supervise Advisers Operating at CU

The Boston Globe is reporting that the Massachusetts Securities Division has fined LPL Financial Holdings Inc. $1 million for allegedly failing to supervise advisers operating out of Digital Federal Credit Union (Marlborough, MA).

LPL is a broker-dealer and investment adviser headquartered in Boston, Massachusetts.

The state regulators alleged that LPL agents were working for both the brokerage and the credit union.

The advisers were being paid bonuses by the credit union and used the name “DCU Financial” for their operation.

According to the Massachusetts Securities Division, the employees did not make it clear to customers that they were being paid by both the credit union and LPL.

The credit union was not cited because the Massachusetts Securities Division does not regulate credit unions.

Read the Boston Globe article.

Read the consent order.
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