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 25-Sep-2024
Initial Filing Format Administrative Action
File Number 3-22173
Allegation Type Investment Advisers/Investment Companies

Violations Alleged

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

Resolutions

First Resolution Date 25-Sep-2024
Headline Total Penalty and Disgorgement $4,600,000

Related Documents:

34-101158 25-Sep-2024 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 September 25, 2024, the SEC instituted administrative and cease-and-desist proceedings against Merrill Lynch, Pierce, Fenner & Smith Incorporated, stating: "From March 2016 to April 2018 (the “Relevant Period”), Merrill, a registered broker-dealer and investment adviser, failed adequately to inform certain clients that a third-party investment adviser, Harvest Volatility Management LLC (“Harvest”), materially exceeded investment exposure levels specifically designated by such clients in a strategy that Harvest managed."
2024-147 25-Sep-2024 Press Release--Administrative Proceeding
SEC Charges Merrill Lynch and Harvest Volatility Management for Ignoring Client Instructions
On September 25, 2024, the SEC "today announced charges against Harvest Volatility Management LLC and Merrill Lynch, Pierce, Fenner & Smith Inc. for exceeding clients’ designated investment limits over a two-year period beginning in March 2016, which resulted in clients paying higher fees, being subjected to increased market exposure, and incurring investment losses."

Related Actions:

In the Matter of Harvest Volatility Management LLC
Harvest Volatility Management LLC