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Former LPL Advisor Suspended for Beneficiary Designation Violations

Posted on July 17th, 2025 at 1:46 PM
Former LPL Advisor Suspended for Beneficiary Designation Violations

From the desk of Jim Eccleston at 麻花传媒

A former LPL Financial advisor has agreed to an eight-month suspension and a $5,000 fine after the Financial Industry Regulatory Authority (FINRA) found he improperly named his immediate family members as beneficiaries on a client’s accounts without firm approval.

According to ThinkAdvisor, Paul X. Nannicelli spent 30 years registered as a broker with LPL and 24 years as an investment adviser. Nannicelli signed a FINRA Acceptance, Waiver and Consent (AWC) letter, resolving the allegations without admitting or denying FINRA’s findings.

According to the regulator, from September 2020 through August 2023, Nannicelli circumvented LPL’s firm policies, which prohibit registered representatives and their immediate family members from being named beneficiaries on client accounts without firm consent. During this period, Nannicelli assisted an unrelated customer in designating his wife as the primary beneficiary and his four children as contingent beneficiaries on six separate accounts. The forms listed them as “family friends” to avoid detection.

Further compounding the misconduct, FINRA stated that Nannicelli later certified on an internal LPL compliance questionnaire that he was unaware of any such beneficiary designations involving his immediate family.

ThinkAdvisor reports that LPL initially submitted a Form U-5 in August 2023 reflecting Nannicelli’s voluntary departure from the firm. Three months later, the firm amended the filing to disclose an internal review prompted by a customer complaint alleging his family members had been improperly added as beneficiaries.

By assisting in these unauthorized beneficiary changes, Nannicelli violated FINRA Rule 2010, which requires members to observe high standards of commercial honor and just and equitable principles of trade.

 

麻花传媒 LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

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