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

Defendant Type: Subsidiary of Public Company

Document Reference: 2018-159

Document Details

Legal Case Name In the Matter of Merrill Lynch, Pierce, Fenner & Smith Incorporated
Document Name Merrill Lynch Settles SEC Charges of Undisclosed Conflict in Advisory Decision
Document Date 20-Aug-2018
Document Format Administrative Proceeding
File Number 3-18651
Allegation Type Investment Advisers/Investment Companies
Document Summary 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."

Disgorgement & Penalty Information

Resolutions
Cease and Desist Order
Censured
Monetary Penalties:

Disgorgement

Individual:     $4,000,000.00 Shared:    

Civil Penalty

Individual:     $4,000,000.00 Shared:    

Pre-Judgment Interest

Individual:     $806,981.00 Shared:    

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."