"LPL Financial to pay back $541,000" by Chris Reidy | Globe Staff October 14, 2014
LPL Financial LLC, a broker-dealer with offices in Boston, has agreed to reimburse about $541,000 to Massachusetts senior citizens for surrender charges they paid when they switched variable annuities, Secretary of State William F. Galvin said Tuesday.
In a memorandum of understanding with the Massachusetts Securities Division, which Galvin oversees, LPL Financial acknowledged that certain annuity switch transactions were conducted in the absence of accurately disclosed surrender charges or in which other determinations were not properly documented, Galvin’s office said.
Looks like a lie to me, be it deception, obfuscation, or omission.
Galvin’s office became aware of the issue after an investigation into LPL’s practices by the securities department for the state of Illinois.
As the Massachusetts Securities Division was beginning its own inquiry, LPL implemented new policies to ensure that customers receive necessary and required disclosure of transaction fees, said Galvin’s office, adding that LPL cooperated in the matter.
“It is vital that all investors, but especially senior investors, have full information when offered changes in their investments,” Galvin said in a statement.
According to Galvin, the agreement with LPL covers 157 transactions involving Massachusetts residents.
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