The Securities and Exchange Commission has closed an investigation of LPL Financial's cash sweep program, according to the broker-dealer's annual report filed Monday.
LPL and other investment firms have come under SEC scrutiny, face civil lawsuits or both over allegations they profited when their cash sweep programs moved customers' uninvested assets into bank accounts paying below-market interest rates.
"In July 2024, putative class action lawsuits were filed against LPL Financial in federal district court alleging certain violations of law in connection with its cash sweep programs. The Company intends to defend vigorously against the lawsuits," the annual report filed Monday states.
"In August 2024, the Company received a request for information from the SEC regarding certain elements of the Company's cash management program for corporate advisory accounts. On January 23, 2026, the SEC informed the Company that it had concluded its investigation and did not intend to recommend an enforcement action," it adds.
An LPL representative didn't immediately respond to an email seeking comment late Tuesday afternoon.
CityWire first reported the closure of the probe earlier Tuesday.
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