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
Document Reference:
IA-5479
Document Details
Legal Case Name
In the Matter of Merrill Lynch, Pierce, Fenner & Smith, Incorporated
Document Name
Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to 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
Document Date
17-Apr-2020
Document Format
Administrative Proceeding
Allegation Type
Investment Advisers/Investment Companies
Document Summary
On April 17, 2020, the SEC instituted settled cease-and-desist proceedings against Merrill Lynch, Pierce, Fenner & Smith, Incorporated. The SEC stated: "These proceedings arise out of breaches of fiduciary duty and inadequate disclosures by registered investment adviser Merrill Lynch, Pierce, Fenner & Smith, Incorporated in connection with its mutual fund share class selection practices and the fees it received pursuant to Rule 12b-1 under the Investment Company Act of 1940 ("12b-1 fees")."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Censured
Other Compliance Related Undertaking
Correct disclosures, evaluate whether clients should be moved to lower-cost share class, update policies and procedures, notify investors
Self Reporting to SEC
Fair Funds
Plan of Distribution
Monetary Penalties:
Disgorgement
Individual:
$297,394.00
Shared:
Pre-Judgment Interest
Individual:
$27,982.00
Shared:
Total Penalty
Individual:
$325,376.00
Shared:
