SEC fines financial firm $275,000.

• Position: United States. Securities and Exchange Commission - Brief article

The Securities and Exchange Commission (SEC) said LPL Financial has agreed to pay a $275,000 penalty for violating customers' privacy. LPL, which has more than one million customer accounts, agreed to pay the fine but did not admit to or deny the findings, Investment News reported.

In 2006, LPL conducted an internal audit that identified inadequate security controls at its branch offices and specifically identified a risk from hacking, but it failed to implement increased security measures, according to the SEC.

As a result, LPL experienced "multiple" hacking incidents beginning in July 2007 and continuing into early 2008. Unauthorized people gained access to the online trading platform for its registered...