LPL Financial Penalized $9M For Email System Failures

Law360, Chicago (May 21, 2013, 1:33 PM EDT) -- The Financial Industry Regulatory Authority on Tuesday hit LPL Financial LLC, the largest independent broker-dealer in the U.S., with $9 million in penalties over outdated email systems that left regulators and others unable to access some of the broker-dealer’s correspondence.

San Diego-based LPL agreed to the settlement after FINRA uncovered 35 significant email system failures since 2007, according to a statement from the Wall Street regulator.

LPL was “well aware” of its email monitoring and retention problems and also made certain material misstatements during the probe,...
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