Glitch Costs LPL Hundreds of Thousands of Dollars
LPL Financial has agreed to pay a $450,000 civil penalty over alleged supervisory failures resulting from a computer glitch, according to local reporting.
The glitch allegedly led LPL supervisors to improperly review several emails, according to the Greater Fort Wayne Business Weekly.
The Securities Division at the Indiana Secretary of State’s office conducted an investigation of LPL’s Indiana operations and uncovered the glitch as part of its email review and branch audit, Indiana Secretary of State Connie Lawson said in a statement cited by the paper.
LPL corrected the problem once the office contacted the firm about it, the publication writes. But the regulator also concluded LPL allegedly failed to perform annual compliance exams of its Indiana branches as required, according to the paper.
In addition to the penalty, LPL has agreed to a third-party review of its policies and procedures to ensure compliance with Indiana law and will send a report to the state’s commissioner within 180 days, the Greater Fort Wayne Business Weekly reports.
“Broker-dealers and financial firms are often the first line of defense against fraud,” Lawson says in the statement cited by the paper. “If a firm does not have, or does not follow its own supervisory procedures, Hoosiers could be at risk.”