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LPL Fined $1M Over Credit Union Rep Failures

Mystery shopper in Massachusetts finds info on bonuses and other compensation "inconsistent and misleading."

By Janet Levaux | Updated on May 05, 2017

Massachusetts securities regulators fined independent broker-dealer LPL Financial $1 million for failing to supervise financial advisors working in Digital Federal Credit Union branches. They claim the LPL registered reps operating as credit union employees were part of securities sales contests in which they earned cash bonuses, used business “inconsistent and confusing” business cards and made “misleading statements” about their compensation.

“The credit union paid cash bonuses and operated sales contests to generate cash prizes based on commissions,” Commonwealth Secretary William Galvin said in a statement.

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