LPL Financial will not face a penalty from the SEC regarding its cash sweep programs, a key issue in the financial advice industry since mid-2024. This decision contrasts with previous penalties against Wells Fargo Advisors and Merrill Lynch in early 2025 for similar issues, but occurred after a change in administration signaled a shift in enforcement priorities. LPL Financial confirmed the SEC concluded its investigation without recommending enforcement action and plans to defend against related class-action lawsuits.
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LPL ducks cash sweep penalty from SEC.
LPL Financial will not face a penalty from the SEC regarding its cash sweep programs, a key issue in the financial advice industry since mid-2024. This decision contrasts with previous penalties against Wells Fargo Advisors and Merrill Lynch in early 2025 for similar issues, but occurred after a change in administration signaled a shift in enforcement priorities. LPL Financial confirmed the SEC concluded its investigation without recommending enforcement action and plans to defend against related class-action lawsuits.