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

Defendant Type: Subsidiary of Public Company

Document Reference: 2011-22

Document Details

Legal Case Name In the Matter of Merrill Lynch, Pierce, Fenner & Smith Incorporated
Document Name SEC Charges Merrill Lynch for Misusing Customer Order Information and Charging Undisclosed Trading Fees
Document Date 25-Jan-2011
Document Format Administrative Proceeding
File Number 3-14204
Allegation Type Broker Dealer
Document Summary On January 25, 2011, the SEC announced that it, "charged Merrill Lynch, Pierce, Fenner & Smith Incorporated with securities fraud for misusing customer order information to place proprietary trades for the firm and for charging customers undisclosed trading fees."

Disgorgement & Penalty Information

Resolutions
Cease and Desist Order
Censured
Remedial Acts or Efforts Before the Resolution

Related Documents:

34-63760 25-Jan-2011 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings, Making Findings, and and Imposing Remedial Sanctions and a Cease-and-Desist Order Pursuant to Sections 15(b)(4) and 21C of the Securities Exchange Act of 1934
On January 25, 2011, the SEC filed a settled administrative proceeding against Merrill Lynch, Pierce, Fenner & Smith Incorporated ("Merrill"). According to the SEC: "This matter involves two kinds of misconduct at Merrill. First, Merrill's proprietary traders misused institutional customer order information which was improperly disclosed by the firm's market makers. Second, Merrill traders improperly charged mark-ups and mark-downs on certain riskless principal trades of institutional and high net worth customers for which the firm had agreed to charge only a commission equivalent."