The Financial Industry Regulatory Authority on Thursday sanctioned Merrill Lynch Pierce Fenner & Smith, a wholly owned subsidiary of Bank of America Corporation, over a variety of supervisory failures, including customer overcharges that were repaid.
Without admitting or denying FINRA's findings, Merrill Lynch agreed to be censured and fined $2.8 million.
"Investors must be able to trust that the fees charged by their securities firm are, in fact, correct," Brad Bennett, head of FINRA enforcement, said in announcing the action.
FINRA found that Merrill violated: NASD rules 3010 and 2110 and FINRA rule 2010 by failing to establish and maintain a reasonable supervisory system;
section 10 of the Securities Exchange Act of 1934 and rule 10b-10(a), and NASD rules 2230 and 2110 by failing to deliver trade confirmations to certain customers, as well as Exchange Act rule 10b-10(a)(2) by failing to disclose or accurately disclose on trade confirmations and account statements whether
This article is only available in full to Compliance Complete
North America Subscribers who are logged in.
Please log in to see if you can view this content.
