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

Defendant Type: Subsidiary of Public Company
Public Company Parent: Bank of America Corporation
SIC Code: 6029
CUSIP: 06050510

Initial Case Details

Legal Case Name In the Matter of Merrill Lynch, Pierce, Fenner & Smith Incorporated
First Document Date 03-Apr-2023
Initial Filing Format Administrative Action
File Number 3-21356
Allegation Type Investment Advisers/Investment Companies

Violations Alleged

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

Resolutions

First Resolution Date 03-Apr-2023
Headline Total Penalty and Disgorgement $9,694,714

Related Documents:

34-97242 03-Apr-2023 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
On April 3, 2023, the SEC instituted settled administrative and cease-and-desist proceedings against Merrill Lynch, Pierce, Fenner & Smith Incorporated, stating: "These proceedings arise out of undisclosed fees that Merrill charged its advisory clients for transfers of funds to or from their advisory accounts requiring foreign currency exchanges (“Foreign Currency Exchanges”) from at least May 12, 2016 through June 29, 2020 (the “Relevant Period”)."
2023-73 03-Apr-2023 Press Release--Administrative Proceeding
SEC Charges Merrill Lynch for Failing to Disclose Foreign Exchange Fees to Clients
The Commission stated: "The Securities and Exchange Commission today charged Merrill Lynch, Pierce, Fenner & Smith Incorporated for charging advisory clients more than $4 million in undisclosed foreign exchange fees for transfers to or from their accounts. To settle the charges, Merrill Lynch has agreed to pay disgorgement, prejudgment interest, and a civil penalty totaling more than $9.5 million and has agreed to distribute funds to harmed clients."