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Former LPL Rep Latest to Fall Victim to Unapproved Messaging Crackdown

Former LPL Rep Latest to Fall Victim to Unapproved Messaging Crackdown. Broker-dealer, brokerage, Financial Industry Regulatory Authority, financial services, FINRA, RIA
Former LPL Rep Latest to Fall Victim to Unapproved Messaging Crackdown. Broker-dealer, brokerage, Financial Industry Regulatory Authority, financial services, FINRA, RIA

The Financial Industry Regulatory Authority fined and suspended Kenneth John Arellano after he used unapproved text messaging services for business communications.

Between October 2018 and September 2019, while associated with LPL, Arellano used a text messaging service that was not approved by the firm to exchange securities-related business communications. Arellano thereby prevented LPL from preserving the communications, according to FINRA. LPL terminated Arenallo’s registration over the unapproved messaging In Oct. 2019.

Arellano consented to a 30-calendar-day suspension from associating with any FINRA member in all capacities, and a $5,000 fine. The advisor has been affiliated with more than 15 firms since 1995. He was terminated by LPL Financial

As The DI Wire previously reported, The Securities and Exchange Commission also announced charges against five broker-dealers, three dually registered broker-dealers and investment advisers, and two affiliated investment advisers “for widespread and longstanding failures to maintain and preserve electronic communications.”

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