LPL Financial on Wednesday settled cases brought by state regulators over sales of non-traded REITs and leveraged ETFs.
In the non-traded REIT case, the firm agreed to pay a $1.4 million fine and make an as-yet undetermined amount of restitution to investors.
State securities regulators claimed LPL reps sold non-traded REITs in violation of prospectus standards, state concentration limits or LPL’s own sales guidelines.
The sales took place between January 1, 2008, through December 31, 2013, and involved more than 2,000 transactions, according to state regulators.
LPL agreed to retain an independent third party to review its non-traded REIT sales over the period and will “make offers of remediation upon completion of the third-party review,” state regulators said in a statement.
The settlement covers all states except Massachusetts and New Hampshire, which brought separate cases against the firm.
In 2013, LPL settled with Massachusetts, agreeing to pay $2 million in restitution and a $500,000 fine.
The New Hampshire case, filed last April, is still pending.
Last year, LPL settled a similar case with the Financial Industry Regulatory Authority, paying $950,000 for supervisory lapses in the sale of direct investments.
The settlement Wednesday with state regulators “represents resolution of the last of the most significant historical regulatory matters that we have been working through,” said LPL spokesman Peter Gilchrist in a statement.
In another settlement announced Wednesday, LPL agreed to pay $1.8 million to close a leveraged ETF case brought by the Massachusetts attorney general and the Delaware Department of Justice.