Defendant Name: Merrill Lynch, Pierce, Fenner & Smith Incorporated

Defendant Type: Subsidiary of Public Company
Public Company Parent: Bank of America Corporation
SIC Code: 6021
CUSIP: 06050510

Initial Case Details

Legal Case Name In the Matter of Merrill Lynch, Pierce and Fenner & Smith Incorporated
First Document Date 20-Aug-2018
Initial Filing Format Administrative Action
File Number 3-18651
Allegation Type Investment Advisers/Investment Companies

Violations Alleged

Other
• Sections 206(2), 206(4) Investment Advisers Act; Rule 206(4)-7 Investment Advisers Act

Resolutions

First Resolution Date 20-Aug-2018
Headline Total Penalty and Disgorgement $8,872,725

Related Documents:

34-83886 20-Aug-2018 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Section 15(b) of the Securities Exchange Act Of 1934 and Sections 203(e) and 203(k) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
According to the Commission: "Merrill Lynch, Pierce, Fenner & Smith Incorporated ("Merrill"), a registered investment adviser, failed to disclose that the portfolio manager evaluation process employed in connection with a January 2013 termination recommendation for over fifteen hundred of its retail advisory accounts was exposed to a conflict of interest involving other business interests."
2018-159 20-Aug-2018 Press Release--Administrative Proceeding
Merrill Lynch Settles SEC Charges of Undisclosed Conflict in Advisory Decision
The Commission stated that: "The Securities and Exchange Commission today announced that Merrill Lynch, Pierce, Fenner & Smith has agreed to pay approximately $8.9 million to settle charges that it failed to disclose a conflict of interest arising out of its own business interests in deciding whether to continue to offer clients products managed by an outside third-party advisory firm."