LPL Financial has recruited Michelle Oroschakoff from Morgan Stanley Wealth Management as chief risk officer and managing director, based in San Diego, CA.

LPL Financial, the independent broker-dealer unit of LPL Financial Holdings, has recruited Michelle Oroschakoff from Morgan Stanley Wealth Management as chief risk officer and managing director, based in San Diego, CA.

Oroschakoff was latterly global chief risk officer at Morgan Stanley WM and, prior to that, chief compliance officer at what was then Morgan Stanley Smith Barney.

Reporting to Mark Casady, chairman and chief executive, Oroschakoff will be responsible for LPL's risk management processes and controls. This includes regulatory compliance, data security and privacy, working closely with the firm’s regulators.

The appointment of Oroschakoff comes just weeks after LPL was fined $7.5 million by the Financial Industry Regulatory Authority for email system failures, while the firm was ordered to set up a $1.5 million fund to compensate customers who were affected by the flaws. Meanwhile, in February, it also paid $5 million to settle allegations brought about by the Commonwealth of Massachusetts that it failed to properly supervise brokers who sold non-traded real estate investment trusts, Reuters reported. The fines are a sign of how regulators, globally, are intensifying efforts to ensure that firms have effective risk control systems in place.

Earlier in her career, Oroschakoff was the general counsel for Fisher Investments, an independent registered investment advisory firm. Earlier still, she spent 11 years in a number of senior legal and compliance roles at Morgan Stanley. In her new role at LPL, Oroschakoff will also serve as a member of the firm’s management committee and as vice chair of the risk oversight committee. 

LPL Financial and its affiliates have some 2,900 employees with primary offices in Boston, MA, Charlotte, NC, and San Diego, CA.