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Finra Suspends, Fines Ex-LPL FA Over Outside Payroll Services Business

By Alex Padalka October 8, 2020

Finra says it has suspended and fined a former LPL Financial advisor who allegedly failed to tell the company about an outside business.

In February 2016, Tracy Meade allegedly started a business offering payroll services to realtors, for which she received compensation, according to a letter of acceptance, waiver and consent published by the industry’s self-regulator. She allegedly continued participating in the business when she associated with LPL in March 2019, Finra says. However, Meade allegedly didn’t provide a written notice seeking LPL’s approval for her outside business, as required by Finra, until March 2019, according to the letter of acceptance.

Meade also allegedly provided services through her outside business to four of her LPL brokerage customers, with whom she established business relationships before associating with LPL, Finra says. Furthermore, the industry’s self-regulator claims that Meade provided false and misleading information on her compliance attestation to LPL by not disclosing her outside business, according to the letter of acceptance.

Meade’s registration with LPL ended in Oct. 8, 2019, with the company saying in her Form U5 termination notice that “she voluntarily resigned while under review for potential undisclosed outside business activities,” Finra says. 

On October 2 this year, Meade consented to a two-month suspension and to pay a $5,000 fine without admitting or denying the findings, according to the letter of acceptance.

Meaded began her financial services industry career in 2013 and was registered with three different firms before associating with LPL in 2019, according to her BrokerCheck profile. In addition to her Finra suspension, she has one other disclosure on her record: a personal bankruptcy from October 2014 that Meade says in the broker comment section was “due to business failure.”

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Tags:  Regulatory/legal issues , LPL Financial

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