Podcast Center
Video Center
Webcasts
Resource Center
Events
By 
April 30, 2024 at 07:35 PM
LPL Financial says it has reached a settlement in principle with regulators over its recordkeeping of off-channel communications and expects to pay a penalty of $50 million by June 30.
The independent broker-dealer agreed to the settlement with the Securities and Exchange Commission on March 22, though the agreement “remains subject to the negotiation of definitive documentation and approval by the SEC,” LPL said late Tuesday in its first-quarter earnings report.
Last year, the SEC proposed a $50 million settlement with LPL to resolve a civil investigation of the firm’s compliance with records preservation rules for business-related electronic communications stored on personal devices or messaging platforms not yet approved by the IBD.
As a result, LPL recorded a $40 million regulatory charge in the third quarter, reflecting the amount of the penalty not covered by the firm’s captive insurance subsidiary.
In its 2023 annual report, the IBD said the fine was tied to “business-related electronic communications stored on personal devices or messaging platforms that we have not approved.
Other financial firms have faced similar regulatory actions.
