The New Hampshire Bureau of Securities Regulation ordered LPL Financial to pay $750,000 over allegations that the firm failed to provide adequate supervision when it sold non-traded real estate investment trusts (REITs) to an elderly investor, resulting in "significant losses."
NH Bureau of Securities Consent Order C-2013000005
The report identified several deficiencies in LPL's supervisory systems and books and records related to non-traded REIT sales, including failures to identify liquid net worth pursuant to the firm's own written supervisory procedures (WSPs).
During its investigation into the case of an 81-year-old complainant alleging unsuitable REIT sales, the Bureau discovered "numerous issues" at LPL regarding non-traded REIT sales to this and other customers. The report lists some of these issues as failure to identify triggers for additional supervisory review, and failure to identify violations of LPL's own WSPs regarding concentration or prospectus requirements.
In May 2015, LPL sanctioned LPL Financial a total of $11.7 million in fines and restitution for a series of supervisory failures and flaws related to complex products including non-traded REITs, exchange-traded funds (ETFs), and variable annuities (VAs).
If you have invested with LPL Financial or with any broker, financial adviser or firm whose unsuitable recommendations or sales of non-traded REITs that were not appropriate for your investment objectives, risk tolerance, or concentration requirements have proven harmful to your investments or interests please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.