LPL Financial LLC agreed to pay a fine of US $10 million to the Financial Industry Regulatory Authority for supervisory failures related to the sale of complex products, including non-traditional exchange-traded funds, certain variable annuity contracts and non-traded real estate investment trusts. According to FINRA, the firm’s supervisory lapses occurred because it failed to accompany its rapid expansion from 2007 to 2013 “with a concomitant dedication of sufficient resources to permit the Firm to meet its supervisory obligations.” FINRA claimed that, during this time period, LPL increased its number of licensed brokers from 8,322 to 17,601 and augmented its revenues from approximately US $2.28 billion to approximately US $ 4.05 billion. Other failures, alleged FINRA, included the firm’s failure to monitor the length of time non-traditional ETFs were held in customer accounts and to deliver prospectuses to customers in connection with such securities; selling variable annuities without, in some instances, disclosing surrender fees; and using a defective monitoring system that did excluded certain mutual fund switch transactions from supervisory review. Generally, said FINRA, there were “multiple deficiencies” in LPL’s monitoring systems for reviewing customer-trading activity, including failure to generate alerts for high-risk activity. The firm also failed to report certain trades to FINRA and the Municipal Securities Rulemaking Board, as required. In addition to its fine, LPL agreed to pay restitution to customers of approximately US $1.7 million.