lincoln investment · lincoln investment crd# 519 sec# 8-14354 main office location 601 office...
TRANSCRIPT
BrokerCheck Report
LINCOLN INVESTMENT
Section Title
Report Summary
Firm History
CRD# 519
1
11
Firm Profile 2 - 10
Page(s)
Firm Operations 12 - 19
Disclosure Events 20
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LINCOLN INVESTMENT
CRD# 519
SEC# 8-14354
Main Office Location
601 OFFICE CENTER DRIVESUITE 300FORT WASHINGTON, PA 19034Regulated by FINRA Philadelphia Office
Mailing Address
601 OFFICE CENTER DRIVESUITE 100-MAILROOMFORT WASHINGTON, PA 19034
This firm is a brokerage firm and an investmentadviser firm. For more information aboutinvestment adviser firms, visit the SEC'sInvestment Adviser Public Disclosure website at:
Business Telephone Number
215-887-8111
https://www.adviserinfo.sec.gov
Report Summary for this Firm
This report summary provides an overview of the brokerage firm. Additional information for this firm can be foundin the detailed report.
Disclosure Events
Brokerage firms are required to disclose certaincriminal matters, regulatory actions, civil judicialproceedings and financial matters in which the firm orone of its control affiliates has been involved.
Are there events disclosed about this firm? Yes
The following types of disclosures have beenreported:
Type Count
Regulatory Event 6
Firm Profile
This firm is classified as a limited liability company.
This firm was formed in Pennsylvania on08/01/2015.
Its fiscal year ends in December.
Firm History
Information relating to the brokerage firm's historysuch as other business names and successions(e.g., mergers, acquisitions) can be found in thedetailed report.
Firm Operations
Is this brokerage firm currently suspended with anyregulator? No
This firm conducts 6 types of businesses.
This firm is affiliated with financial or investmentinstitutions.
This firm has referral or financial arrangements withother brokers or dealers.
This firm is registered with:
• the SEC• 1 Self-Regulatory Organization• 53 U.S. states and territories
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This firm is classified as a limited liability company.
This firm was formed in Pennsylvania on 08/01/2015.
CRD#
This section provides the brokerage firm's full legal name, "Doing Business As" name, business and mailingaddresses, telephone number, and any alternate name by which the firm conducts business and where such name isused.
Firm Profile
Firm Names and Locations
Its fiscal year ends in December.
LINCOLN INVESTMENT PLANNING, LLC
SEC#
519
8-14354
Main Office Location
Mailing Address
Business Telephone Number
Doing business as LINCOLN INVESTMENT
215-887-8111
Regulated by FINRA Philadelphia Office
601 OFFICE CENTER DRIVESUITE 300FORT WASHINGTON, PA 19034
601 OFFICE CENTER DRIVESUITE 100-MAILROOMFORT WASHINGTON, PA 19034
Other Names of this Firm
Name Where is it used
THE LEGEND GROUP AK, AL, AR, AZ, CA,CO, CT, DC, DE, FL,GA, HI, IA, ID, IL, IN,KS, KY, LA, MA, MD,ME, MI, MN, MO,MS, MT, NC, ND, NE,NH, NJ, NM, NV, NY,OH, OK, OR, PA, PR,RI, SC, SD, TN, TX,UT, VA, VI, VT, WA,WI, WV, WY 2©2020 FINRA. All rights reserved. Report about LINCOLN INVESTMENT
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AK, AL, AR, AZ, CA,CO, CT, DC, DE, FL,GA, HI, IA, ID, IL, IN,KS, KY, LA, MA, MD,ME, MI, MN, MO,MS, MT, NC, ND, NE,NH, NJ, NM, NV, NY,OH, OK, OR, PA, PR,RI, SC, SD, TN, TX,UT, VA, VI, VT, WA,WI, WV, WY
THE LINCOLN INVESTMENT COMPANIES AK, AL, AR, AZ, CA,CO, CT, DC, DE, FL,GA, HI, IA, ID, IL, IN,KS, KY, LA, MA, MD,ME, MI, MN, MO,MS, MT, NC, ND, NE,NH, NJ, NM, NV, NY,OH, OK, OR, PA, PR,RI, SC, SD, TN, TX,UT, VA, VI, VT, WA,WI, WV, WY
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This section provides information relating to all direct owners and executive officers of the brokerage firm.
Direct Owners and Executive Officers
Firm Profile
Position
Percentage of Ownership
Is this a public reportingcompany?
Position Start Date
Does this owner direct themanagement or policies ofthe firm?
LINCOLN INVESTMENT CAPITAL HOLDINGS, LLC
MEMBER/OWNER
75% or more
No
Domestic Entity
08/2015
Yes
Is this a domestic or foreignentity or an individual?
Legal Name & CRD# (if any):
Position
Percentage of Ownership
Is this a public reportingcompany?
Position Start Date
Does this owner direct themanagement or policies ofthe firm?
BURA, KAREN DOUGHERTY
ASSISTANT TREASURER
Less than 5%
No
Individual
11/2014
No
1666006
Is this a domestic or foreignentity or an individual?
Legal Name & CRD# (if any):
Position
Percentage of Ownership
Position Start Date
FLAX, STEVEN NEIL
SR VICE-PRESIDENT, HUMAN RESOURCES
Less than 5%
Individual
01/2012
5655474
Is this a domestic or foreignentity or an individual?
Legal Name & CRD# (if any):
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Direct Owners and Executive Officers (continued)
Firm Profile
Percentage of Ownership
Is this a public reportingcompany?
Does this owner direct themanagement or policies ofthe firm?
Less than 5%
No
Yes
Position
Percentage of Ownership
Is this a public reportingcompany?
Position Start Date
Does this owner direct themanagement or policies ofthe firm?
FORST, EDWARD SAMUEL JR
ELECTED MANAGER/PRESIDENT/CEO
Less than 5%
No
Individual
08/2015
Yes
708024
Is this a domestic or foreignentity or an individual?
Legal Name & CRD# (if any):
Position
Percentage of Ownership
Is this a public reportingcompany?
Position Start Date
Does this owner direct themanagement or policies ofthe firm?
HOUSER, DENIS NEIL
SR VICE-PRESIDENT, BUSINESS DEVELOPMENT FOR CAPITAL ANALYSTS
Less than 5%
No
Individual
06/2012
Yes
1640242
Is this a domestic or foreignentity or an individual?
Legal Name & CRD# (if any):
KELM, CHRISTOPHER THOMAS
1694572
Legal Name & CRD# (if any):
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Direct Owners and Executive Officers (continued)
Firm Profile
Position
Percentage of Ownership
Is this a public reportingcompany?
Position Start Date
Does this owner direct themanagement or policies ofthe firm?
VP, OPERATIONS/PRINCIPAL OPERATIONS OFFICER
Less than 5%
No
Individual
01/2019
No
1694572
Is this a domestic or foreignentity or an individual?
Position
Percentage of Ownership
Is this a public reportingcompany?
Position Start Date
Does this owner direct themanagement or policies ofthe firm?
KOERICK, DEIRDRE BRODERICK
SR VICE-PRESIDENT, CHIEF COMPLIANCE OFFICER
Less than 5%
No
Individual
04/2000
Yes
1029346
Is this a domestic or foreignentity or an individual?
Legal Name & CRD# (if any):
Position
Percentage of Ownership
Position Start Date
Does this owner direct themanagement or policies ofthe firm?
MCCARTHY, DIANE MULHERRIN
SR VICE-PRESIDENT/CHIEF FINANCIAL OFFICER/PRINCIPAL FINANCIALOFFICER
Less than 5%
Individual
09/2018
Yes
4923328
Is this a domestic or foreignentity or an individual?
Legal Name & CRD# (if any):
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Direct Owners and Executive Officers (continued)
Firm Profile
Is this a public reportingcompany?
Does this owner direct themanagement or policies ofthe firm?
No
Yes
Position
Percentage of Ownership
Is this a public reportingcompany?
Position Start Date
Does this owner direct themanagement or policies ofthe firm?
MEHROTRA, SHASHI
SR VICE-PRESIDENT, CHIEF INVESTMENT STRATEGIST
Less than 5%
No
Individual
10/2019
Yes
2640875
Is this a domestic or foreignentity or an individual?
Legal Name & CRD# (if any):
Position
Percentage of Ownership
Is this a public reportingcompany?
Position Start Date
Does this owner direct themanagement or policies ofthe firm?
PATTERSON, DEBRA ANN
SECRETARY
Less than 5%
No
Individual
12/2016
Yes
1066197
Is this a domestic or foreignentity or an individual?
Legal Name & CRD# (if any):
RAO, VELLORE GURURAJA
Individual
6052318
Is this a domestic or foreignentity or an individual?
Legal Name & CRD# (if any):
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Direct Owners and Executive Officers (continued)
Firm Profile
Position
Percentage of Ownership
Is this a public reportingcompany?
Position Start Date
Does this owner direct themanagement or policies ofthe firm?
VP, TECHNOLOGY
Less than 5%
No
Individual
01/2019
No
Is this a domestic or foreignentity or an individual?
Position
Percentage of Ownership
Is this a public reportingcompany?
Position Start Date
Does this owner direct themanagement or policies ofthe firm?
SCHU, JOHN DENNIS
SR VICE-PRESIDENT, BRANCH DEVELOPMENT
Less than 5%
No
Individual
07/1997
Yes
1036737
Is this a domestic or foreignentity or an individual?
Legal Name & CRD# (if any):
Position
Percentage of Ownership
Position Start Date
Does this owner direct themanagement or policies ofthe firm?
SHIVERS, RAYMOND PAUL III
SR VICE-PRESIDENT, OPERATIONS AND TECHNOLOGY / CHIEFOPERATING OFFICER
Less than 5%
Individual
01/2019
Yes
4205724
Is this a domestic or foreignentity or an individual?
Legal Name & CRD# (if any):
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Direct Owners and Executive Officers (continued)
Firm Profile
Is this a public reportingcompany?
Does this owner direct themanagement or policies ofthe firm?
No
Yes
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This section provides information relating to any indirect owners of the brokerage firm.
Indirect Owners
Firm Profile
LINCOLN INVESTMENT GROUP HOLDINGS, INC.
INDIRECT OWNER
LINCOLN INVESTMENT CAPITAL HOLDINGS, LLC
75% or more
No
Domestic Entity
08/2015
Yes
Legal Name & CRD# (if any):
Is this a domestic or foreignentity or an individual?
Company through whichindirect ownership isestablished
Relationship to Direct Owner
Relationship Established
Percentage of Ownership
Does this owner direct themanagement or policies ofthe firm?
Is this a public reportingcompany?
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Firm History
This section provides information relating to any successions (e.g., mergers, acquisitions) involving the firm.
08/01/2015Date of Succession:
This firm was previously:
Predecessor SEC#:
LINCOLN INVESTMENT PLANNING, INC.
8-14354
519Predecessor CRD#:
Description LINCOLN INVESTMENT PLANNING, INC. CHANGED ITS LEGAL STATUSFROM A SUBCHAPTER S CORPORATION TO A LIMITED LIABILITY COMPANY(LLC) EFFECTIVE 8/1/2015. ALL ASSETS AND LIABILITIES WERE ASSUMEDBY THE SUCCESSOR AND THERE WAS NO CHANGE IN OWNERSHIP ORCONTROL. ON 8/3/2015, THE DIRECT OWNER WAS CHANGED FROMLINCOLN INVESTMENT GROUP HOLDINGS, INC. TO LINCOLN INVESTMENTCAPITAL HOLDINGS, LLC. LINCOLN INVESTMENT GROUP HOLDINGS, INC.THEN BECAME THE INDIRECT OWNER.
08/01/2015Date of Succession:
This firm was previously:
Predecessor SEC#:
LINCOLN INVESTMENT PLANNING, INC.
8-14354
519Predecessor CRD#:
Description LINCOLN INVESTMENT PLANNING, INC. IS CHANGING ITS LEGAL STATUSFROM AN SUBCHAPTER S CORPORATION TO A LIMITED LIABILITYCOMPANY (LLC). ALL ASSETS AND LIABILITIES WILL BE ASSUMED BY THESUCCESSOR.
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Firm Operations
RegistrationsThis section provides information about the regulators (Securities and Exchange Commission (SEC), self-regulatoryorganizations (SROs), and U.S. states and territories) with which the brokerage firm is currently registered andlicensed, the date the license became effective, and certain information about the firm's SEC registration.
This firm is currently registered with the SEC, 1 SRO and 53 U.S. states and territories.
SEC Registration Questions
This firm is registered with the SEC as:
A broker-dealer:
A broker-dealer and government securities broker or dealer:
A government securities broker or dealer only:
This firm has ceased activity as a government securities broker or dealer:
Yes
Yes
No
No
Federal Regulator Status Date Effective
SEC Approved 01/14/1969
Self-Regulatory Organization Status Date Effective
FINRA Approved 01/22/1969
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Firm Operations
Registrations (continued)
U.S. States &Territories
Status Date Effective
Alabama Approved 02/08/1988
Alaska Approved 11/19/1986
Arizona Approved 07/31/1986
Arkansas Approved 04/26/1990
California Approved 11/05/1986
Colorado Approved 03/24/1988
Connecticut Approved 03/24/1986
Delaware Approved 08/20/1982
District of Columbia Approved 03/04/1987
Florida Approved 04/27/1983
Georgia Approved 09/21/1981
Hawaii Approved 08/13/1987
Idaho Approved 01/25/1988
Illinois Approved 07/14/1986
Indiana Approved 05/28/1987
Iowa Approved 07/22/2010
Kansas Approved 07/21/1987
Kentucky Approved 10/02/1986
Louisiana Approved 08/17/1987
Maine Approved 07/22/1987
Maryland Approved 07/08/1985
Massachusetts Approved 05/28/1987
Michigan Approved 07/27/1987
Minnesota Approved 07/15/1986
Mississippi Approved 02/22/1988
Missouri Approved 02/09/1988
Montana Approved 07/21/1987
Nebraska Approved 07/07/1987
Nevada Approved 05/27/1987
New Hampshire Approved 03/03/1988
New Jersey Approved 07/13/1983
New Mexico Approved 09/23/1988
New York Approved 06/17/1982
U.S. States &Territories
Status Date Effective
North Carolina Approved 01/13/1988
North Dakota Approved 04/19/1988
Ohio Approved 07/07/1986
Oklahoma Approved 06/09/1987
Oregon Approved 03/24/1988
Pennsylvania Approved 01/21/1969
Puerto Rico Approved 05/29/2012
Rhode Island Approved 12/13/1985
South Carolina Approved 03/25/1988
South Dakota Approved 06/12/1987
Tennessee Approved 03/13/1987
Texas Approved 01/30/1985
Utah Approved 09/02/1987
Vermont Approved 09/04/1987
Virgin Islands Approved 04/30/2012
Virginia Approved 09/22/1981
Washington Approved 08/20/1986
West Virginia Approved 07/29/1986
Wisconsin Approved 05/04/1989
Wyoming Approved 09/13/1988
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Firm Operations
Types of BusinessThis section provides the types of business, including non-securities business, the brokerage firm is engaged in orexpects to be engaged in.
Other Types of Business
This firm does not effect transactions in commodities, commodity futures, or commodity options.This firm does engage in other non-securities business.
Non-Securities Business Description: 13B RETIREMENT PLAN ADMINISTRATION: LINCOLN IS ADMINISTRATIVEAGENT FOR THE CUSTODIAN (UMB BANK, N.A.) OF LINCOLN'SSPONSORED CUSTODIAL RETIREMENT PROGRAMS.
This firm currently conducts 6 types of businesses.
Types of Business
Mutual fund retailer
U S. government securities broker
Municipal securities broker
Broker or dealer selling variable life insurance or annuities
Investment advisory services
Broker or dealer involved in a networking, kiosk or similar arrangment with a: bank, savings bank or association, orcredit union
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Firm Operations
Clearing Arrangements
This firm does not hold or maintain funds or securities or provide clearing services for other broker-dealer(s).
Introducing Arrangements
This firm does refer or introduce customers to other brokers and dealers.
Name: PERSHING LLC
Business Address: ONE PERSHING PLAZAJERSEY CITY, NJ 07399
CRD #: 7560
Effective Date: 12/15/1996
Description: LINCOLN INVESTMENT HAS A FULLY DISCLOSED CLEARINGAGREEMENT WITH PERSHING LLC.
PRIOR TO MARCH, 1997, LINCOLN HAD A FULLY DISCLOSED CLEARINGAGREEMENT WITH WHEAT FIRST SECURITIES, INC.
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Firm Operations
Industry Arrangements
This firm does have books or records maintained by a third party.
This firm does have accounts, funds, or securities maintained by a third party.
This firm does have customer accounts, funds, or securities maintained by a third party.
Name: PERSHING LLC
Business Address: ONE PERSHING PLAZAJERSEY CITY, NJ 07399
CRD #: 7560
Effective Date: 12/15/1996
Description: LINCOLN INVESTMENT HAS A FULLY DISCLOSED CLEARINGAGREEMENT WITH PERSHING LLC.
PRIOR TO MARCH, 1997, LINCOLN HAD A FULLY DISCLOSED CLEARINGAGREEMENT WITH WHEAT FIRST SECURITIES, INC.
Name: PERSHING LLC
Business Address: ONE PERSHING PLAZAJERSEY CITY, NJ 07399
CRD #: 7560
Effective Date: 12/15/1996
Description: LINCOLN INVESTMENT HAS A FULLY DISCLOSED CLEARINGAGREEMENT WITH PERSHING LLC.
PRIOR TO MARCH, 1997, LINCOLN HAD A FULLY DISCLOSED CLEARINGAGREEMENT WITH WHEAT FIRST SECURITIES, INC.
Name: PERSHING LLC
Business Address: ONE PERSHING PLAZAJERSEY CITY, NJ 07399
CRD #: 7560
Effective Date: 12/15/1996
Description: LINCOLN INVESTMENT HAS A FULLY DISCLOSED CLEARINGAGREEMENT WITH PERSHING LLC.
PRIOR TO MARCH, 1997, LINCOLN HAD A FULLY DISCLOSED CLEARINGAGREEMENT WITH WHEAT FIRST SECURITIES, INC.
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Firm Operations
Industry Arrangements (continued)
This firm does not have individuals who control its management or policies through agreement.
This firm does not have individuals who wholly or partly finance the firm's business.
Control Persons/Financing
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Firm Operations
Organization AffiliatesThis section provides information on control relationships the firm has with other firms in the securities, investmentadvisory, or banking business.
This firm is, directly or indirectly:
· in control of· controlled by· or under common control withthe following partnerships, corporations, or other organizations engaged in the securities or investmentadvisory business.
Yes
No
No
01/01/2017
4600 EAST PARK DRIVESUITE 300PALM BEACH GARDENS, FL 33410
104761
LEGEND ADVISORY, LLC is under common control with the firm.
UNDER COMMON CONTROL AND OWNERSHIP BY LINCOLN INVESTMENTCAPITAL HOLDINGS, LLC ("LICH"). LINCOLN INVESTMENT GROUPHOLDINGS, INC. IS A MAJORITY OWNER OF LICH.
Description:
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Effective Date:
Business Address:
CRD #:
Yes
No
No
06/01/2012
601 OFFICE CENTER DRIVESUITE 300FORT WASHINGTON, PA 19034
162200
CAPITAL ANALYSTS is under common control with the firm.
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Effective Date:
Business Address:
CRD #:
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Firm Operations
Organization Affiliates (continued)
UNDER COMMON CONTROL AND OWNERSHIP BY LINCOLN INVESTMENTCAPITAL HOLDINGS, LLC. ("LICH"). LINCOLN INVESTMENT GROUPHOLDINGS, INC. IS A MAJORITY OWNER OF LICH.
Description:
This firm is not directly or indirectly, controlled by the following:
· bank holding company· national bank· state member bank of the Federal Reserve System· state non-member bank· savings bank or association· credit union· or foreign bank
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Disclosure Events
All firms registered to sell securities or provide investment advice are required to disclose regulatory actions, criminal orcivil judicial proceedings, and certain financial matters in which the firm or one of its control affiliates has been involved.For your convenience, below is a matrix of the number and status of disclosure events involving this brokerage firm orone of its control affiliates. Further information regarding these events can be found in the subsequent pages of thisreport.
Final On AppealPending
Regulatory Event 0 6 0
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Disclosure Event Details
What you should know about reported disclosure events:
1. BrokerCheck provides details for any disclosure event that was reported in CRD. It also includessummary information regarding FINRA arbitration awards in cases where the brokerage firm wasnamed as a respondent.
2. Certain thresholds must be met before an event is reported to CRD, for example: o A law enforcement agency must file formal charges before a brokerage firm is required to disclose a
particular criminal event.3. Disclosure events in BrokerCheck reports come from different sources:
o Disclosure events for this brokerage firm were reported by the firm and/or regulators. When the firmand a regulator report information for the same event, both versions of the event will appear in theBrokerCheck report. The different versions will be separated by a solid line with the reporting sourcelabeled.
4. There are different statuses and dispositions for disclosure events: o A disclosure event may have a status of pending, on appeal, or final.
§ A "pending" event involves allegations that have not been proven or formally adjudicated.§ An event that is "on appeal" involves allegations that have been adjudicated but are currently
being appealed.§ A "final" event has been concluded and its resolution is not subject to change.
o A final event generally has a disposition of adjudicated, settled or otherwise resolved.§ An "adjudicated" matter includes a disposition by (1) a court of law in a criminal or civil matter,
or (2) an administrative panel in an action brought by a regulator that is contested by the partycharged with some alleged wrongdoing.
§ A "settled" matter generally involves an agreement by the parties to resolve the matter.Please note that firms may choose to settle customer disputes or regulatory matters forbusiness or other reasons.
§ A "resolved" matter usually involves no payment to the customer and no finding ofwrongdoing on the part of the individual broker. Such matters generally involve customerdisputes.
5. You may wish to contact the brokerage firm to obtain further information regarding any of thedisclosure events contained in this BrokerCheck report.
Regulatory - Final
This type of disclosure event involves (1) a final, formal proceeding initiated by a regulatory authority (e.g., a statesecurities agency, self-regulatory organization, federal regulator such as the U.S. Securities and Exchange Commission,foreign financial regulatory body) for a violation of investment-related rules or regulations; or (2) a revocation orsuspension of the authority of a brokerage firm or its control affiliate to act as an attorney, accountant or federalcontractor.
Disclosure 1 of 6
Reporting Source: Regulator
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT FAILED TOIMPLEMENT REASONABLY DESIGNED SURVEILLANCE PROCEDURES TOMONITOR ITS REGISTERED REPRESENTATIVES' RATES OF EFFECTINGVARIABLE ANNUITY EXCHANGES. THE FINDINGS STATED THAT THE FIRMONLY TRACKED EXCHANGES WHERE IT WAS THE BROKER OF RECORDFOR THE VARIABLE ANNUITY THAT WAS BEING EXCHANGED. IN SO DOING,THE FIRM DID NOT TRACK VARIABLE ANNUITY EXCHANGES WHERE THEFIRM WAS NOT THE BROKER OF RECORD FOR THE VARIABLE ANNUITYTHAT WAS BEING EXCHANGED. THE FINDINGS ALSO STATED THAT MORETHAN HALF OF THE APPROXIMATELY 2,800 VARIABLE ANNUITYEXCHANGES EFFECTED BY THE FIRM'S REPRESENTATIVES WEREEXCLUDED FROM ITS SURVEILLANCE REPORT BECAUSE LINCOLN WASNOT THE BROKER OF RECORD FOR THE VARIABLE ANNUITY THAT WASBEING EXCHANGED. AFTER FINRA RAISED THIS ISSUE WITH THE FIRM, ITCORRECTED ITS SURVEILLANCE REPORT TO INCLUDE ALL VARIABLEANNUITY EXCHANGES.
Current Status: Final
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Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 09/25/2018
Docket/Case Number: 2017052410201
Principal Product Type: Annuity(ies) - Variable
Other Product Type(s):
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT FAILED TOIMPLEMENT REASONABLY DESIGNED SURVEILLANCE PROCEDURES TOMONITOR ITS REGISTERED REPRESENTATIVES' RATES OF EFFECTINGVARIABLE ANNUITY EXCHANGES. THE FINDINGS STATED THAT THE FIRMONLY TRACKED EXCHANGES WHERE IT WAS THE BROKER OF RECORDFOR THE VARIABLE ANNUITY THAT WAS BEING EXCHANGED. IN SO DOING,THE FIRM DID NOT TRACK VARIABLE ANNUITY EXCHANGES WHERE THEFIRM WAS NOT THE BROKER OF RECORD FOR THE VARIABLE ANNUITYTHAT WAS BEING EXCHANGED. THE FINDINGS ALSO STATED THAT MORETHAN HALF OF THE APPROXIMATELY 2,800 VARIABLE ANNUITYEXCHANGES EFFECTED BY THE FIRM'S REPRESENTATIVES WEREEXCLUDED FROM ITS SURVEILLANCE REPORT BECAUSE LINCOLN WASNOT THE BROKER OF RECORD FOR THE VARIABLE ANNUITY THAT WASBEING EXCHANGED. AFTER FINRA RAISED THIS ISSUE WITH THE FIRM, ITCORRECTED ITS SURVEILLANCE REPORT TO INCLUDE ALL VARIABLEANNUITY EXCHANGES.
Resolution Date: 09/25/2018
Resolution:
Other Sanctions Ordered:
Sanction Details: THE FIRM WAS CENSURED AND FINED $35,000. FINES PAID IN FULL ONOCTOBER 9, 2018.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $35,000.00
Acceptance, Waiver & Consent(AWC)
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Sanction Details: THE FIRM WAS CENSURED AND FINED $35,000. FINES PAID IN FULL ONOCTOBER 9, 2018.
iReporting Source: Firm
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Censure
Other Sanction(s)/ReliefSought:
FINE
Date Initiated: 09/25/2018
Docket/Case Number: 2017052410201
Principal Product Type: Annuity(ies) - Variable
Other Product Type(s):
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT DURING THERELEVANT PERIOD, AUGUST 1, 2015 THROUGH SEPTEMBER 1, 2017, ITFAILED TO IMPLEMENT REASONABLY DESIGNED SURVEILLANCEPROCEDURES TO MONITOR ITS REGISTERED REPRESENTATIVES' RATESOF EFFECTING VARIABLE ANNUITY EXCHANGES. THE FINDINGS STATEDTHAT THE FIRM ONLY TRACKED EXCHANGES WHERE IT WAS THE BROKEROF RECORD FOR THE VARIABLE ANNUITY THAT WAS BEING EXCHANGED.IN SO DOING, THE FIRM DID NOT TRACK VARIABLE ANNUITY EXCHANGESWHERE THE FIRM WAS NOT THE BROKER OF RECORD FOR THE VARIABLEANNUITY THAT WAS BEING EXCHANGED. THE FINDINGS ALSO STATEDTHAT DURING THE RELEVANT PERIOD, MORE THAN HALF OF THEAPPROXIMATELY 2,800 VARIABLE ANNUITY EXCHANGES EFFECTED BYTHE FIRM'S REPRESENTATIVES WERE EXCLUDED FROM ITSSURVEILLANCE REPORT BECAUSE LINCOLN WAS NOT THE BROKER OFRECORD FOR THE VARIABLE ANNUITY THAT WAS BEING EXCHANGED.AFTER FINRA RAISED THIS ISSUE WITH THE FIRM, IT CORRECTED ITSSURVEILLANCE REPORT TO INCLUDE ALL VARIABLE ANNUITYEXCHANGES.
Current Status: Final
Resolution Date: 09/25/2018
Resolution:
Other Sanctions Ordered:
Sanctions Ordered: CensureMonetary/Fine $35,000.00
Acceptance, Waiver & Consent(AWC)
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Other Sanctions Ordered:
Sanction Details: THE FIRM PAID THE $35,000.00 FINE ON 10/3/2018
Disclosure 2 of 6
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Reporting Source: Regulator
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Date Initiated: 09/05/2018
Docket/Case Number: 2017053723701
Principal Product Type: Mutual Fund(s)
Other Product Type(s):
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT ITDISADVANTAGED CERTAIN RETIREMENT PLAN AND CHARITABLEORGANIZATION CUSTOMERS THAT WERE ELIGIBLE TO PURCHASE CLASSA SHARES IN CERTAIN MUTUAL FUNDS WITHOUT A FRONT-END SALESCHARGE. THE FINDINGS STATED THAT THESE ELIGIBLE CUSTOMERSWERE INSTEAD SOLD CLASS A SHARES WITH A FRONT-END SALESCHARGE, OR CLASS B OR C SHARES WITH BACK-END SALES CHARGESAND HIGHER ONGOING FEES AND EXPENSES. THESE SALESDISADVANTAGED ELIGIBLE CUSTOMERS BY CAUSING THE CUSTOMERSTO PAY HIGHER FEES THAN THEY WERE ACTUALLY REQUIRED TO PAY.THE FINDINGS ALSO STATED THAT THE FIRM FAILED TO REASONABLYSUPERVISE THE APPLICATION OF SALES-CHARGE WAIVERS TO ELIGIBLEMUTUAL FUND SALES. THE FIRM RELIED ON ITS FINANCIAL ADVISORS TODETERMINE THE APPLICABILITY OF SALES-CHARGE WAIVERS, BUT FAILEDTO MAINTAIN ADEQUATE WRITTEN SUPERVISORY PROCEDURE (WSPS) TOASSIST FINANCIAL ADVISORS IN MAKING THIS DETERMINATION. INADDITION, THE FIRM FAILED TO ADEQUATELY NOTIFY AND TRAIN ITSFINANCIAL ADVISORS REGARDING THE AVAILABILITY OF MUTUAL FUNDSALES-CHARGE WAIVERS FOR ELIGIBLE CUSTOMERS. THE FIRM ALSOFAILED TO ADOPT ADEQUATE CONTROLS TO DETECT INSTANCES INWHICH THEY DID NOT PROVIDE SALES-CHARGE WAIVERS TO ELIGIBLECUSTOMERS IN CONNECTION WITH THEIR MUTUAL FUND PURCHASES. ASA RESULT OF THE FIRM'S FAILURE TO APPLY AVAILABLE SALES-CHARGEWAIVERS, THE FIRM ESTIMATES THAT ELIGIBLE CUSTOMERS WEREOVERCHARGED BY APPROXIMATELY $1,167,689 FOR MUTUAL FUNDPURCHASES MADE SINCE JANUARY 1, 2011.
Current Status: Final
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Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Resolution Date: 09/05/2018
Resolution:
Other Sanctions Ordered: INTEREST; REMEDIATION PLAN
Sanction Details: THE FIRM WAS CENSURED AND REQUIRED TO PROVIDE FINRA WITH AREMEDIATION PLAN TO REMEDIATE ELIGIBLE CUSTOMERS WHOQUALIFIED FOR, BUT DID NOT RECEIVE, THE APPLICABLE MUTUAL FUNDSALES-CHARGE WAIVER. AS PART OF THIS SETTLEMENT, THE FIRMAGREES TO PAY RESTITUTION TO ELIGIBLE CUSTOMERS, WHICH ISESTIMATED TO TOTAL $1,368,681 (THE AMOUNT ELIGIBLE CUSTOMERSWERE OVERCHARGED, INCLUSIVE OF INTEREST).
Regulator Statement IN RESOLVING THIS MATTER, FINRA HAS RECOGNIZED THEEXTRAORDINARY COOPERATION OF THE FIRM FOR: (1) INITIATING ANINVESTIGATION TO IDENTIFY WHETHER ELIGIBLE CUSTOMERS RECEIVEDSALES CHARGE WAIVERS DURING THE RELEVANT PERIOD, AND SELF-REPORTING ITS FINDINGS TO FINRA; (2) PROVIDING RESTITUTION TOELIGIBLE CUSTOMERS FOR A PERIOD OF SEVEN AND ONE-HALF YEARS;(3) PROMPTLY ESTABLISHING A PLAN OF REMEDIATION FOR ELIGIBLECUSTOMERS WHO DID NOT RECEIVE APPROPRIATE SALES CHARGEWAIVERS; (4) PROMPTLY TAKING ACTION AND REMEDIAL STEPS TOCORRECT THE VIOLATIVE CONDUCT, INCLUDING BY MAKINGPROGRAMMING CHANGES TO PRECLUDE ONGOING CUSTOMER HARM ASTHE FIRM INSTITUTED PERMANENT SYSTEMS UPGRADES; AND (5)EMPLOYING SUBSEQUENT CORRECTIVE MEASURES, PRIOR TODETECTION OR INTERVENTION BY A REGULATOR, TO REVISE ITSPROCEDURES TO AVOID RECURRENCE OF THE MISCONDUCT.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureDisgorgement/Restitution
Acceptance, Waiver & Consent(AWC)
iReporting Source: Firm
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Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Censure
Other Sanction(s)/ReliefSought:
Date Initiated: 09/05/2018
Docket/Case Number: 2017053723701
Principal Product Type: Mutual Fund(s)
Other Product Type(s):
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT ITDISADVANTAGED CERTAIN RETIREMENT PLAN AND CHARITABLEORGANIZATION CUSTOMERS THAT WERE ELIGIBLE TO PURCHASE CLASSA SHARES IN CERTAIN MUTUAL FUNDS WITHOUT A FRONT-END SALESCHARGE. THE FINDINGS STATED THAT THESE ELIGIBLE CUSTOMERSWERE INSTEAD SOLD CLASS A SHARES WITH A FRONT-END SALESCHARGE, OR CLASS B OR C SHARES WITH BACK-END SALES CHARGESAND HIGHER ONGOING FEES AND EXPENSES. THESE SALESDISADVANTAGED ELIGIBLE CUSTOMERS BY CAUSING THE CUSTOMERSTO PAY HIGHER FEES THAN THEY WERE ACTUALLY REQUIRED TO PAY.THE FINDINGS ALSO STATED THAT THE FIRM FAILED TO REASONABLYSUPERVISE THE APPLICATION OF SALES-CHARGE WAIVERS TO ELIGIBLEMUTUAL FUND SALES. THE FIRM RELIED ON ITS FINANCIAL ADVISORS TODETERMINE THE APPLICABILITY OF SALES-CHARGE WAIVERS, BUT FAILEDTO MAINTAIN ADEQUATE WRITTEN SUPERVISORY PROCEDURES (WSPS)TO ASSIST FINANCIAL ADVISORS IN MAKING THIS DETERMINATION. INADDITION, THE FIRM FAILED TO ADEQUATELY NOTIFY AND TRAIN ITSFINANCIAL ADVISORS REGARDING THE AVAILABILITY OF MUTUAL FUNDSALES-CHARGE WAIVERS FOR ELIGIBLE CUSTOMERS. THE FIRM ALSOFAILED TO ADOPT ADEQUATE CONTROLS TO DETECT INSTANCES INWHICH THE FIRM DID NOT PROVIDE SALES-CHARGE WAIVERS TO THEELIGIBLE CUSTOMERS IN CONNECTION WITH THEIR MUTUAL FUNDPURCHASES. AS A RESULT OF THE FIRM'S FAILURE TO APPLY APPLICABLESALES-CHARGE WAIVERS, THE FIRM ESTIMATES THAT ELIGIBLECUSTOMERS WERE OVERCHARGED BY APPROXIMATELY $1,167,689 FORMUTUAL FUND PURCHASES MADE SINCE JANUARY 1, 2011.
Current Status: Final
Resolution Date: 09/05/2018
Resolution:
Sanctions Ordered: CensureDisgorgement/Restitution
Acceptance, Waiver & Consent(AWC)
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Other Sanctions Ordered: INTEREST; REMEDIATION PLAN
Sanction Details: THE FIRM WAS CENSURED AND REQUIRED TO PROVIDE FINRA WITH AREMEDIATION PLAN TO REMEDIATE ELIGIBLE CUSTOMERS WHOQUALIFIED FOR, BUT DID NOT RECEIVE, THE APPLICABLE MUTUAL FUNDSALES-CHARGE WAIVER. AS PART OF THIS SETTLEMENT, THE FIRMAGREED TO PAY RESTITUTION TO ELIGIBLE CUSTOMERS, WHICH ISESTIMATED TO TOTAL $1,368,681 (THE AMOUNT ELIGIBLE CUSTOMERSWERE OVERCHARGED, INCLUSIVE OF INTEREST).
Firm Statement IN RESOLVING THIS MATTER, FINRA RECOGNIZED THE EXTRAORDINARYCOOPERATION OF THE FIRM FOR: (1) INITIATING AN INVESTIGATION TOIDENTIFY WHETHER ELIGIBLE CUSTOMERS RECEIVED SALES CHARGEWAIVERS DURING THE RELEVANT PERIOD, AND SELF-REPORTING ITSFINDINGS TO FINRA; (2) PROVIDING RESTITUTION TO ELIGIBLECUSTOMERS FOR A PERIOD OF SEVEN AND ONE-HALF YEARS; (3)PROMPTLY ESTABLISHING A PLAN OF REMEDIATION FOR ELIGIBLECUSTOMERS WHO DID NOT RECEIVE APPROPRIATE SALES CHARGEWAIVERS; (4) PROMPTLY TAKING ACTION AND REMEDIAL STEPS TOCORRECT THE VIOLATIVE CONDUCT, INCLUDING BY MAKINGPROGRAMMING CHANGES TO PRECLUDE ONGOING CUSTOMER HARM ASTHE FIRM INSTITUTED PERMANENT SYSTEM UPGRADES; AND (5)EMPLOYING SUBSEQUENT CORRECTIVE MEASURES, PRIOR TODETECTION OR INTERVENTION BY A REGULATOR, TO REVISE THE FIRM'SPROCEDURES TO AVOID RECURRENCE OF THE MISCONDUCT.
Sanctions Ordered: CensureDisgorgement/Restitution
Disclosure 3 of 6
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Reporting Source: Regulator
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT FAILED TOENFORCE A SUPERVISORY SYSTEM AND WSPS REASONABLY DESIGNEDTO ENSURE AN EFFECTIVE REVIEW OF CONSOLIDATED REPORTSPRODUCED BY REGISTERED REPRESENTATIVES AND PROVIDED TOCUSTOMERS. THE FINDINGS STATED THAT THE FIRM REQUIREDREGISTERED REPRESENTATIVES WHO PRODUCED CONSOLIDATEDREPORTS USING AN APPLICATION OTHER THAN ONE OF THREEAPPROVED METHODS TO EITHER UPLOAD THE CONSOLIDATED REPORTSTO THE FIRM'S COMMUNICATIONS REVIEW SYSTEM SO THAT THEY COULDBE FORWARDED TO A DESIGNATED SUPERVISOR FOR REVIEW, ORPROVIDE THE REPORTS DIRECTLY TO THEIR SUPERVISOR. HOWEVER,THE FIRM FAILED TO ENSURE THAT REPRESENTATIVES WERE COMPLYINGWITH THIS PROCEDURE OR THAT THE FIRM WAS CAPTURING THE FULLEXTENT OF REPRESENTATIVES' CONSOLIDATED REPORT ACTIVITY.
Current Status: Final
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Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
N/A
Date Initiated: 01/27/2016
Docket/Case Number: 2014039109201
Principal Product Type: No Product
Other Product Type(s):
WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT FAILED TOENFORCE A SUPERVISORY SYSTEM AND WSPS REASONABLY DESIGNEDTO ENSURE AN EFFECTIVE REVIEW OF CONSOLIDATED REPORTSPRODUCED BY REGISTERED REPRESENTATIVES AND PROVIDED TOCUSTOMERS. THE FINDINGS STATED THAT THE FIRM REQUIREDREGISTERED REPRESENTATIVES WHO PRODUCED CONSOLIDATEDREPORTS USING AN APPLICATION OTHER THAN ONE OF THREEAPPROVED METHODS TO EITHER UPLOAD THE CONSOLIDATED REPORTSTO THE FIRM'S COMMUNICATIONS REVIEW SYSTEM SO THAT THEY COULDBE FORWARDED TO A DESIGNATED SUPERVISOR FOR REVIEW, ORPROVIDE THE REPORTS DIRECTLY TO THEIR SUPERVISOR. HOWEVER,THE FIRM FAILED TO ENSURE THAT REPRESENTATIVES WERE COMPLYINGWITH THIS PROCEDURE OR THAT THE FIRM WAS CAPTURING THE FULLEXTENT OF REPRESENTATIVES' CONSOLIDATED REPORT ACTIVITY.
Resolution Date: 01/27/2016
Resolution:
Other Sanctions Ordered: UNDERTAKING
Sanction Details: THE FIRM WAS CENSURED, FINED $75,000, AND REQUIRED TO SUBMIT ACERTIFICATION, IN WRITING, TO FINRA WITHIN 90 DAYS OF THE ISSUANCEOF THIS AWC, CERTIFYING THAT THE FIRM HAS ADOPTED ANDIMPLEMENTED PROCEDURES REASONABLY DESIGNED TO ENHANCE THEENFORCEMENT OF ITS SUPERVISORY SYSTEM AND WSPS TO ENSURE ANEFFECTIVE REVIEW OF CONSOLIDATED REPORTS PRODUCED BYREGISTERED REPRESENTATIVES AND PROVIDED TO CUSTOMERS.FINE PAID IN FULL ON FEBRUARY 23, 2016.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $75,000.00
Acceptance, Waiver & Consent(AWC)
iReporting Source: Firm
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT FAILED TOENFORCE A SUPERVISORY SYSTEM AND WSPS REASONABLY DESIGNEDTO ENSURE AN EFFECTIVE REVIEW OF CONSOLIDATED REPORTSPRODUCED BY REGISTERED REPRESENTATIVES AND PROVIDED TOCUSTOMERS. THE FINDINGS STATED THAT THE FIRM REQUIREDREGISTERED REPRESENTATIVES WHO PRODUCED CONSOLIDATEDREPORTS USING AN APPLICATION OTHER THAN ONE OF THREEAPPROVED METHODS TO EITHER UPLOAD THE CONSOLIDATED REPORTSTO THE FIRM'S COMMUNICATIONS REVIEW SYSTEM SO THAT THEY COULDBE FORWARDED TO A DESIGNATED SUPERVISOR FOR REVIEW, ORPROVIDE THE REPORTS DIRECTLY TO THEIR SUPERVISOR. HOWEVER,THE FIRM FAILED TO ENSURE THAT REPRESENTATIVES WERE COMPLYINGWITH THIS PROCEDURE OR THAT THE FIRM WAS CAPTURING THE FULLEXTENT OF REPRESENTATIVES' CONSOLIDATED REPORT ACTIVITY.
Current Status: Final
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Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
Date Initiated: 01/27/2016
Docket/Case Number: 2014039109201
Principal Product Type: No Product
Other Product Type(s):
WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT FAILED TOENFORCE A SUPERVISORY SYSTEM AND WSPS REASONABLY DESIGNEDTO ENSURE AN EFFECTIVE REVIEW OF CONSOLIDATED REPORTSPRODUCED BY REGISTERED REPRESENTATIVES AND PROVIDED TOCUSTOMERS. THE FINDINGS STATED THAT THE FIRM REQUIREDREGISTERED REPRESENTATIVES WHO PRODUCED CONSOLIDATEDREPORTS USING AN APPLICATION OTHER THAN ONE OF THREEAPPROVED METHODS TO EITHER UPLOAD THE CONSOLIDATED REPORTSTO THE FIRM'S COMMUNICATIONS REVIEW SYSTEM SO THAT THEY COULDBE FORWARDED TO A DESIGNATED SUPERVISOR FOR REVIEW, ORPROVIDE THE REPORTS DIRECTLY TO THEIR SUPERVISOR. HOWEVER,THE FIRM FAILED TO ENSURE THAT REPRESENTATIVES WERE COMPLYINGWITH THIS PROCEDURE OR THAT THE FIRM WAS CAPTURING THE FULLEXTENT OF REPRESENTATIVES' CONSOLIDATED REPORT ACTIVITY.
Resolution Date: 01/27/2016
Resolution:
Other Sanctions Ordered: UNDERTAKING
Sanction Details: THE FIRM WAS CENSURED, FINED $75,000, AND REQUIRED TO SUBMIT ACERTIFICATION, IN WRITING, TO FINRA WITHIN 90 DAYS OF THE ISSUANCEOF THIS AWC, CERTIFYING THAT THE FIRM HAS ADOPTED ANDIMPLEMENTED PROCEDURES REASONBLY DESIGNED TO ENHANCE THEENFORCEMENT OF ITS SUPERVISORY SYSTEM AND WSPS TO ENSURE ANEFFECTIVE REVIEW OF CONSOLIDATED REPORTS PRODUCED BYREGISTERED REPRESENTATIVES AND PROVIDED TO CUSTOMERS.
Sanctions Ordered: CensureMonetary/Fine $75,000.00
Acceptance, Waiver & Consent(AWC)
Disclosure 4 of 6
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Reporting Source: Regulator
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Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 03/23/2009
Docket/Case Number: 2005001160501
Principal Product Type: Mutual Fund(s)
Other Product Type(s):
Allegations: NASD RULE 2110: RESPONDENT LINCOLN INVESTMENT PLANNING, INC.(LINCOLN) WAS REQUIRED TO PROVIDE REFUNDS EXPEDITIOUSLY INCASES WHERE IT WAS AWARE THAT CUSTOMERS HAD NOT RECEIVEDTHE APPROPRIATE BREAKPOINT DISCOUNT; HOWEVER, LINCOLN FAILEDTO PROVIDE TIMELY REFUNDS TO CUSTOMERS.
Current Status: Final
Resolution Date: 03/23/2009
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, LINCOLN CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;THEREFORE, THE FIRM IS CENSURED AND FINED $15,000.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $15,000.00
Acceptance, Waiver & Consent(AWC)
iReporting Source: Firm
Allegations: IN MARCH 2003, LINCOLN INVESTMENT WAS REQUIRED BY NASD TOCOMPLETE A MUTUAL FUND BREAKPOINT SELF-ASSESSMENT. IT WASALLEGED THAT THE FIRM VIOLATED NASD CONDUCT RULE 2110 FOR THEUNTIMELY MAILING OF CUSTOMER REFUNDS ISSUED PURSUANT TO THEBREAKPOINT SELF-ASSESSMENT.
Current Status: Final
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Initiated By: FINANCIAL INDUSTRY REGULATORY AUTHORITY (FINRA)
Principal Sanction(s)/ReliefSought:
Censure
Other Sanction(s)/ReliefSought:
FINE IN THE AMOUNT OF $15,000
Date Initiated: 02/19/2008
Docket/Case Number: 2005001160501
Principal Product Type: Mutual Fund(s)
Other Product Type(s):
IN MARCH 2003, LINCOLN INVESTMENT WAS REQUIRED BY NASD TOCOMPLETE A MUTUAL FUND BREAKPOINT SELF-ASSESSMENT. IT WASALLEGED THAT THE FIRM VIOLATED NASD CONDUCT RULE 2110 FOR THEUNTIMELY MAILING OF CUSTOMER REFUNDS ISSUED PURSUANT TO THEBREAKPOINT SELF-ASSESSMENT.
Resolution Date: 03/23/2009
Resolution:
Other Sanctions Ordered:
Sanction Details: FINE OF $15,000 LEVIED AGAINST THE FIRM AND PAID WITHIN 10 DAYS OFDATE OF AWC.
Firm Statement IT WAS DETERMINED THAT 398 INVESTORS WERE NOT PROVIDED THEIRBREAKPOINT REFUND WITHIN 90 DAYS OF RECEIPT OF THE INVESTOR'SCLAIM FORM. ALL INVESTORS WERE SENT THEIR REFUND WITHINTEREST CREDITED FROM THE DATE OF THE ORIGINAL TRANSACTION UPTO THE DATE THE REFUND WAS CREDITED TO THE INVESTOR. THE FIRMHAS VOLUNTARILY CONSENTED TO FINRA'S LETTER OF ACCEPTANCE,WAIVER AND CONSENT DATED MARCH 23, 2009.
Sanctions Ordered: CensureMonetary/Fine $15,000.00
Acceptance, Waiver & Consent(AWC)
Disclosure 5 of 6
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Reporting Source: Regulator
Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
Date Initiated: 07/27/1993
Docket/Case Number: C9A930025
Principal Product Type:
Allegations:
Current Status: Final
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Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Principal Product Type:
Other Product Type(s):
Resolution Date: 07/27/1993
Resolution:
Other Sanctions Ordered:
Sanction Details:
Regulator Statement ON JULY 27, 1993, DISTRICT NO. 9 NOTIFIED RESPONDENTS LINCOLNINVESTMENT PLANNING, INC., EDWARD S. FORST, SR., AND THOMASFORST THAT THE LETTER OF ACCEPTANCE, WAIVER AND CONSENT NO.C9A930025 WAS ACCEPTED; THEREFORE, THEY ARE CENSURED ANDFINED$7,500, JOINTLY AND SEVERALLY - (ARTICLE III, SECTIONS 1,21(a), 27 AND 39 OF THE RULES OF FAIR PRACTICE - RESPONDENTMEMBER, ACTING THROUGH RESPONDENT THOMAS FORST, CHANGEDTHEMANNER IN WHICH IT CONDUCTED ITS BUSINESS WITHOUT OBTAININGTHEPRIOR WRITTEN APPROVAL OF THE NASD IN THAT IT BECAME A MEMBEROF THE FUND SERVE DIVISION OF THE NATIONAL STOCK CLEARINGCORPORATION FOR THE PURPOSE OF SETTLING CERTAIN CUSTOMERS'MUTUAL FUND WIRE ORDER TRANSACTIONS AND BEGAN PROCESSINGMUTUALFUND TRANSACTIONS IN A MANNER THAT UTILIZED CUSTOMERS' FREECREDIT BALANCES, WHICH PRECLUDED CLAIMING AN EXEMPTION UNDERSEC RULE 15c3-3(k). AFTER EFFECTING THE CHANGE IN ITS BUSINESS,RESPONDENT MEMBER, ACTING THROUGH RESPONDENT FORST, FAILEDTOPREPARE RESERVE COMPUTATIONS PURSUANT TO THE RULE AND MAKENECESSARY DEPOSITS; EFFECTED TRANSACTIONS IN SECURITIES WHENITFAILED TO MAINTAIN ITS MINIMUM REQUIRED NET CAPITAL; PREPAREDINACCURATE NET CAPITAL COMPUTATIONS; FAILED TO COMPLY WITH SECRULE 17a-4 IN THAT AS OF THE TIME OF THE NASD EXAMINATION, ITDID NOT PRESERVE THE CUSTOMERS STATEMENTS PROVIDED TO IT BYTHEFIRM WHICH CLEARED ITS GENERAL SECURITIES TRANSACTIONS AND DIDNOT PRESERVE STATEMENTS PROVIDED TO IT BY VARIOUS MUTUALFUNDSAND INSURANCE COMPANIES; FILED AN INACCURATE FOCUS PART IREPORT; RESPONDENT MEMBER, ACTING THROUGH RESPONDENTEDWARDFORST, FAILED TO CONDUCT AN ANNUAL INSPECTION OF AN OFFICE OFSUPERVISORY JURISDICTION AND FAILED TO CONDUCT A REVIEW OFNUMEROUS BRANCH OFFICES; FAILED TO ESTABLISH, MAINTAIN ANDENFORCE WRITTEN SUPERVISORY PROCEDURES WHICH WEREREASONABLYDESIGNED TO ENSURE COMPLIANCE WITH RULES AND REGULATIONS;AND,FAILED TO COMPLY WITH MSRB RULE G-2 IN THAT IT EFFECTEDT*See FAQ #1*
Sanctions Ordered: CensureMonetary/Fine $7,500.00
Consent
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ON JULY 27, 1993, DISTRICT NO. 9 NOTIFIED RESPONDENTS LINCOLNINVESTMENT PLANNING, INC., EDWARD S. FORST, SR., AND THOMASFORST THAT THE LETTER OF ACCEPTANCE, WAIVER AND CONSENT NO.C9A930025 WAS ACCEPTED; THEREFORE, THEY ARE CENSURED ANDFINED$7,500, JOINTLY AND SEVERALLY - (ARTICLE III, SECTIONS 1,21(a), 27 AND 39 OF THE RULES OF FAIR PRACTICE - RESPONDENTMEMBER, ACTING THROUGH RESPONDENT THOMAS FORST, CHANGEDTHEMANNER IN WHICH IT CONDUCTED ITS BUSINESS WITHOUT OBTAININGTHEPRIOR WRITTEN APPROVAL OF THE NASD IN THAT IT BECAME A MEMBEROF THE FUND SERVE DIVISION OF THE NATIONAL STOCK CLEARINGCORPORATION FOR THE PURPOSE OF SETTLING CERTAIN CUSTOMERS'MUTUAL FUND WIRE ORDER TRANSACTIONS AND BEGAN PROCESSINGMUTUALFUND TRANSACTIONS IN A MANNER THAT UTILIZED CUSTOMERS' FREECREDIT BALANCES, WHICH PRECLUDED CLAIMING AN EXEMPTION UNDERSEC RULE 15c3-3(k). AFTER EFFECTING THE CHANGE IN ITS BUSINESS,RESPONDENT MEMBER, ACTING THROUGH RESPONDENT FORST, FAILEDTOPREPARE RESERVE COMPUTATIONS PURSUANT TO THE RULE AND MAKENECESSARY DEPOSITS; EFFECTED TRANSACTIONS IN SECURITIES WHENITFAILED TO MAINTAIN ITS MINIMUM REQUIRED NET CAPITAL; PREPAREDINACCURATE NET CAPITAL COMPUTATIONS; FAILED TO COMPLY WITH SECRULE 17a-4 IN THAT AS OF THE TIME OF THE NASD EXAMINATION, ITDID NOT PRESERVE THE CUSTOMERS STATEMENTS PROVIDED TO IT BYTHEFIRM WHICH CLEARED ITS GENERAL SECURITIES TRANSACTIONS AND DIDNOT PRESERVE STATEMENTS PROVIDED TO IT BY VARIOUS MUTUALFUNDSAND INSURANCE COMPANIES; FILED AN INACCURATE FOCUS PART IREPORT; RESPONDENT MEMBER, ACTING THROUGH RESPONDENTEDWARDFORST, FAILED TO CONDUCT AN ANNUAL INSPECTION OF AN OFFICE OFSUPERVISORY JURISDICTION AND FAILED TO CONDUCT A REVIEW OFNUMEROUS BRANCH OFFICES; FAILED TO ESTABLISH, MAINTAIN ANDENFORCE WRITTEN SUPERVISORY PROCEDURES WHICH WEREREASONABLYDESIGNED TO ENSURE COMPLIANCE WITH RULES AND REGULATIONS;AND,FAILED TO COMPLY WITH MSRB RULE G-2 IN THAT IT EFFECTEDT*See FAQ #1*
iReporting Source: Firm
Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 03/25/1993
Docket/Case Number: C9A930025-AWC
Principal Product Type: No Product
Other Product Type(s):
Allegations: VIOLATIONS GOVERNING RULES OF THE NASD, SEC AND MSRB:INACCURATE FINANCIAL REPORTING: FAILURE TO MAINTAIN MINIMUM NETCAPITAL AS OF PERIOD ENDING 5/31/92; CUSTOMER RESERVE COMP.ERRORS; SHORT-COMINGS IN ESTABLISHMENT, MAINTENANCE ANDENFORCEMENT OF SUPERV. PROCED. OF THE FIRM; FAILURE TO BEPROPERLY REGISTERED TO TRANSACT MUNI. SEC. BUS
Current Status: Final
Resolution Date: 07/27/1993
Resolution:
Sanctions Ordered: CensureMonetary/Fine $7,500.00
Acceptance, Waiver & Consent(AWC)
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Other Sanctions Ordered:
Sanction Details: LINCOLN INVESTMENT PLANNING, INC., EDWARD S. FORST, SR. ANDTHOMAS FORST SANCTIONED, CENSURED AND FINED $7,500.00 JOINTLYAND SEVERALLY AS A RESULT OF THE ALLEGED FINDINGS BY THE NASDOF VIOLATIONS OF THE RULES GOVERNING A BROKER-DEALER.
Firm Statement BY SIGNING THE AWC, THE FIRM ACCEPTED THE ALLEGATIONS MADEAGAINST THE FIRM, WAIVED THEIR RIGHT TO A HEARING TO DEFENDTHEM, AND CONSENTED TO THE FINE AND CENSURE IMPOSED BY THENASD ON THE FIRM AND ITS PRINCIPALS. AT NO TIME WERE CUSTOMERFUNDS OR SECURITIES IN JEOPARDY OR UTILIZED FOR ANYTHING BUTTHE SOLE PURPOSE OF THE CUSTOMER AND HIS/HER INSTRUCTIONS.THESE ALLEGED VIOLATIONS WERE AS A RESULT OF AN INSPECTION OFTHE BROKER-DEALER CONDUCTED BY THE NASD IN JUNE AND JULY, 1992.
Sanctions Ordered: CensureMonetary/Fine $7,500.00
Disclosure 6 of 6
i
Reporting Source: Regulator
Initiated By: IOWA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 05/31/1988
Docket/Case Number: C88-10-085
URL for Regulatory Action:
Principal Product Type:
Other Product Type(s):
Allegations:
Current Status: Final
Resolution Date: 05/31/1988
Resolution:
Other Sanctions Ordered:
Sanction Details:
Sanctions Ordered: CensureMonetary/Fine $250.00
Consent
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Sanction Details:
Regulator Statement 6/30/88-FORM U6 (8072-15888) DISCLOSES LINCOLN INVESTMENTPLANNING INC. (LIPI) CONSENTED TO AN ORDER OF CENSURE, AND $250FINE WITHOUT ADMITTING OR DENYING THE BUREAU'S ALLEGATIONS.THEBUREAU ALLEGED LIPI EFFECTED SALES OF RIGHTIME FUND, RIGHTIMEGOVERNMENT SECURITIES FUND, RIGHTIME BLUE CHIP FUND, WHILEUNLICENSED AS A BD AND THROUGH UNLICENSED AGENTS.DOCKET/CASENO. C88-10-085, DATED MAY 31, 1988.
iReporting Source: Firm
Initiated By: SUPERINTENDENT OF SECURITIES OF THE STATE OF IOWA
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 10/01/1987
Docket/Case Number: IOWA ORDER & CONSENT TO ORDER C88-10-85
Principal Product Type: Mutual Fund(s)
Other Product Type(s):
Allegations: THE APPLICANT EFFECTED THREE (3) TRANSACTIONS IN MUTUAL FUNDSECURITIES ON BEHALF OF IOWANS BEFORE OBTAINING PROPERREGISTRATION AS SET FORTH IN SECTION 502 302 CODE OF IOWA 1987
Current Status: Final
Resolution Date: 05/31/1988
Resolution:
Other Sanctions Ordered:
Sanction Details: APPLICANT CENSURED AND FINED $250.00 PURSUANT TO SECTION 502304(1) CODE OF IOWA, 1987
Sanctions Ordered: CensureMonetary/Fine $250.00
Other
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