Supervisory Failure Leaves LPL Financial with Heavy Fines

Investor lawyers say the Financial Industry Regulatory Authority (FINRA) found supervisory deficiencies related to investment concentration at leading independent broker-dealer LPL Finanical. As a result of alleged unsuitable recommendations, FINRA has announced a penalty in the form of a $950,000 against LPL Financial.

Alternative investments can include a variety of products, including oil and gas partnerships, hedge funds, non-traded real estate investment trusts (REITs), business development companies (BDCs) and other related categories. Though LPL Financial set forth guidelines to manage investment concentration, FINRA reports that from January 2008 until July 2012, there was no internal effort to enforce these guidelines. As a result, some clients may have received investment advice that resulted in levels of concentration that were excessive.

If you suffered significant losses as a result of an unsuitable recommendation to purchase or over-concentrate your portfolio in non-conventional investments (whether from LPL or another stockbroker or financial advisor), you may be able to recover your losses through securities arbitration. To find out more about your legal rights and options, contact a securities arbitration lawyer at Law Office of Christopher J. Gray, P.C. at (866) 966-9598 or newcases@investorlawyers.net for a no-cost, confidential consultation.