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Report: Mass. fines LPL Financial over insurance product sales

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Report: Mass. fines LPL Financial over insurance product sales

Secretary of the Commonwealth of Massachusetts William Galvin has ordered LPL Financial Holdings Inc. to pay about $2.5 million to compensate investors related to the sale of allegedly unsuitable insurance products, Reuters reported.

Massachusetts' securities regulator also penalized the company $975,000 and required the disgorgement of $208,000 in commissions on the sales.

The order finds that LPL's adviser altered clients' ages and net worth in order to declare them suitable for purchasing variable annuity investments. The company failed to prevent the sale and despite several red flags and discrepancies, according to the securities regulator.