The Financial Industry Regulatory Authority announced Monday that it has fined LPL Financial LLC $950,000 for supervisory deficiencies related to the sales of alternative investment products, including nontraded real estate investment trusts.

As FINRA explained, many alternative investments, such as REITs, set forth concentration limits for investors in their offering documents, and certain states have imposed concentration limits for investors in alternative investments.

FINRA found that while LPL had established its own concentration guidelines for alternative investments, from Jan. 1, 2008, to July 1, 2012, LPL failed to adequately supervise the sales of alternative investments — which included REITs, oil and gas partnerships, business development companies (BDCs), hedge funds, managed futures and other illiquid pass-through investments — that violated these concentration limits.

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