LPL FINANCIAL STOCKBROKER MISCONDUCT

LPL Financial Services is the updated name of Linsco/Private Ledger, a Southern California company. Originally a background provider of regulatory needs and other services supporting stockbrokers who were on their own, LPL Financial Services has become one of the largest stockbrokerage firms on its own. LPL still tries to make the brokers be essentially self-employed, but the laws and regulations require that LPL supervise the brokers. The brokers receive a large proportion of the fees and commissions. The obligation to supervise cannot be avoided.

LPL typically uses a fee-only brokerage model, selling stocks, bonds, mutual funds, annuities, insurance and other investments, and other financial services. It has more than 10,000 brokers, most of which are in their own small or single person offices. This presents a real regulatory and supervision challenge, even though LPL claims that the use of computers supports their supervision.