LPL Financial LLC - Consent Order - Excessive Commissions

WA DFI Securities Enforcement

Filed March 17th, 2026

Detected April 6th, 2026

Summary

The Washington State Department of Financial Institutions Division of Securities issued a Consent Order against LPL Financial LLC for charging unreasonable commissions on equity transactions. The firm must pay $61,456.75 in restitution to 1,724 Washington State residents and a $25,000 fine. Within 60 days, LPL must certify in writing that its policies and procedures regarding fair and reasonable commissions have been enhanced.

View original document View source feed page

What changed

The Washington State Department of Financial Institutions entered a Consent Order (S-25-3997-26-CO01) against LPL Financial LLC for violating RCW 21.20.110 and WAC 460-20C-150. From April 30, 2020 through April 30, 2025, LPL charged unreasonable commissions on approximately 127,045 equity transactions totaling $2,486,739.20, with 1,724 Washington State resident accounts charged commissions exceeding 5% totaling $61,456.75. The firm also failed to reasonably supervise transactions applying the minimum equity commission.

LPL Financial LLC is ordered to pay restitution of $61,456.75 to affected Washington residents, a civil fine of $25,000, cease and desist from further violations, and certify in writing within 60 days that its policies and procedures have been changed to ensure all commissions are fair and reasonable. Broker-dealers offering equity transactions to Washington State residents should review commission structures to ensure compliance with state securities laws.

What to do next

Pay restitution of $61,456.75 to affected Washington State residents
Pay civil fine of $25,000 to the Washington State Securities Division
Certify in writing within 60 days that policies and procedures regarding commission fairness have been enhanced

Penalties

Restitution: $61,456.75; Civil fine: $25,000; Cease and desist order; Censure

Source document (simplified)

LPL Financial LLC – Consent Order – S-25-3997-26-CO01

Case summary

On March 17, 2026, the Washington State Department of Financial Institutions Division of Securities entered a Consent Order (S-25-3997-26-CO01) against LPL Financial LLC.

Order details

Order File: S-25-3997-26-CO01

Laws & Rules: RCW 21.20.110, WAC 460-20C-150

Penalties/Remedies:

Cease and desist;
Censure;
Restitution: $61,456.75;
Fine: $25,000.00; Certify in writing to the Securities Division within 60 days of entry of the Order that LPL’s policies and procedures have been changed and enhanced to ensure that all commissions are fair and reasonable

Findings

From April 30, 2020 to April 30, 2025, the Respondent charged unreasonable commissions on approximately 127,045 equity transactions totaling $2,486,739.20, which included 1,724 accounts of residents of Washington State who were charged commissions in excess of 5% totaling $61,456.75.

The Respondent did not reasonably supervise transactions that applied the minimum equity commission.