A Consent Order was entered on February 6, 2013 by the Massachusetts Securities Division resolving the administrative complaint initiated in December against LPL Financial LLC relating to its sales practices of non-traded real estate investment trusts (“REITs”.) The initial blog post can be read here.
According to the Consent Order, LPL will offer to pay restitution to LPL customers who were Massachusetts residents at the time of the purchase of non-traded REITs that were sold in violation of Massachusetts 10% concentration limit – designed to cap an individual’s purchase to 10% of his/her liquid net worth and/or in violation of concentration limits contained in prospectuses. In addition, LPL has consented to the imposition of a $500,000 fine by the Commonwealth of Massachusetts.
The full Consent Order can be found here.