Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:NASD Fines Merrill Lynch Not Rated 0.0 Email Routing List Email & Route  Print Print
Wednesday, March 15, 2006

NASD Fines Merrill Lynch

by: Armie Margaret Lee

The NASD has slapped a $5 million fine on Merrill Lynch for its failure to put in place an adequate supervisory system at its financial advisory centers (FAC) in Hopewell, New Jersey and Jacksonville, Florida.

From 2001 to 2004, some of the firm’s investment service advisors (ISAs) recommended mutual fund switches that were "accompanied by misrepresentations and omission of facts to customers," NASD said in a news release on Wednesday.

In addition, Merrill Lynch allowed individuals lacking the proper securities licenses and qualifications to be responsible for the supervision of the ISAs. The firm also staged several sales contests which improperly awarded non-cash compensation to ISAs, the regulator said.

"Regardless of the size of their brokerage account, all investors are entitled to services from registered representatives acting in their clients' best interests who are reasonably supervised by properly registered professionals," said James Shorris, NASD senior vice president and acting head of enforcement.

Merrill Lynch, he said, "failed to meet these basic standards by permitting its call center to function without proper supervisory controls, which gave rise to impermissible sales contests, unsuitable mutual fund switches and other systemic failures."

Merrill Lynch, which neither admitted nor denied any wrongdoing, was barred from holding sales contests for FAC personnel for three years. It was likewise ordered to retain an independent consultant to recommend corrective measures to improve policies and supervisory procedures for the FAC. 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use