Merrill Lynch has agreed to pay a $1 million civil fine in a settlement with federal regulators. The company had been accused of misleading pension consulting clients and failing to disclose conflicts of interest in recommending the use of its affiliated services. The Securities and Exchange Commission said the violations occurred from 2002 through 2005. Merrill, which was acquired by Bank of America in January, did agree to be censured and to refrain from future violations of the securities laws.
The SEC said Merrill failed to disclose conflicts of interest when recommending that clients direct their money managers to execute trades through the brokerage firm. Merrill claims the events leading to the settlement mainly involved a team of investment advisers in Florida who have since left the firm. It appears that Merrill got off pretty light in this settlement. Our firm is handling claims against Merrill Lynch. If you want additional information on this subject, contact Jay Aughtman (Jay.Aughtman@BeasleyAllen.com) or Scarlette Tuley (Scarlette.Tuley@BeasleyAllen.com) in our firm at 800-898-2034.
Source: Associated Press
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