Under the agreement, LPL Financial will pay a fine of $5.5 million and restitution of $651,375, the regulator said, adding that the broker-dealer also agreed to a censure.
Finra said in a filing Tuesday that LPL was cited for not reasonably supervising its registered reps when they made direct business transactions, sending customers letters with fee inaccuracies, and failing to ensure that certain recommendations of business development companies complied with Reg BI.
The violations happened between January 2012 and November 2022 and came to light during a Finra examination, as a result of self-disclosure made by LPL and, in at least one case, a customer complaint, Finra stated in the consent agreement.