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, Fenner, & Smith Incorporated
First Document Date 11-Mar-2009
Initial Filing Format Administrative Action
File Number 3-13407
Allegation Type Broker Dealer

Violations Alleged

Other
• Section 15(f) Exchange Act; Section 204A Advisers Act

Resolutions

First Resolution Date 11-Mar-2009
Headline Total Penalty and Disgorgement $7,000,000

Related Documents:

34-59555 11-Mar-2009 Administrative Proceeding
Order Instituting Proceedings Pursuant to Sections 15(b)(4) and 21C 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 Cease-and-Desist Order, Penalties, and Other Relief
On March 11, 2009, the SEC instituted settled proceedings against Merrill Lynch, Pierce, Fenner, & Smith Incorporated stating: "From 2002 to 2004, several Merrill Lynch retail brokers permitted day traders to hear confidential information regarding Merrill Lynch institutional customers’ unexecuted orders as they were transmitted over Merrill Lynch’s squawk box system."
2009-54 11-Mar-2009 Press Release--Administrative Proceeding
SEC Charges Merrill Lynch for Failure to Protect Customer Order Information on "Squawk Boxes"
The SEC stated that: "[It] charged Merrill Lynch, Pierce, Fenner & Smith Inc. with securities laws violations for having inadequate policies and procedures for controlling access to institutional customer order flow. Merrill Lynch agreed to settle the SEC’s charges and pay a $7 million penalty, among other remedies."