LPL Financial Holdings Inc. has been fined $2 million by the Illinois Securities Department and ordered to pay of $820,000 in restitution to clients over failures related to recordkeeping and supervision of variable annuity sales.
LPL has been the target of a number of enforcement actions over the last few years. The most recent previous instance led to a FINRA fine of $950,000 in March for supervisory failures. Many of these actions have been regarding alternative investments, including variable annuities, REITs and similar products.
VAs have been a big seller for LPL, and for many other firms, despite the problems inherent in making sure they're suitable for buyers. So supervision and recordkeeping are very big deals, particularly in regards to the sale of VAs.
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