Related Documents:
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."
34-101814
04-Dec-2024
Administrative Proceeding
Extension Order
The Commission ordered that: "the Division’s request for an extension of time until October 31, 2025, to submit a Proposed Plan of Distribution is granted."
Order Appointing Tax Administrator
The Commission ordered that: "Miller Kaplan Arase
LLP is appointed as the Tax Administrator for the combined QSF in the above-referenced
proceedings."
34-103849
03-Sep-2025
Administrative Proceeding
Order Appointing Fund Administrator, Setting Administrator's Bond Amount, and Authorizing the Approval and Payment of the Fees and Expenses of Administration
The Commission ordered that: "A. Rust is appointed as the Fund Administrator . . . ; B. Rust shall obtain a bond . . . in the amount of $9,300,000.00; C. the Fund Administrator will submit invoices to the Commission staff for services rendered . . . ; D. . . . OFM is authorized to pay the Fund Administrator’s fees and expenses from the Fair Fund"
34-104426
17-Dec-2025
Administrative Proceeding
Notice of Proposed Plan of Distribution and Opportunity for Comment
The Commission stated: "Notice is hereby given . . . that the Division of Enforcement has submitted
to the Commission a proposed plan of distribution (the “Proposed Plan”) for the distribution of
monies paid in the above-captioned matter."
Proposed Plan of Distribution
The Commission stated: "The Division of Enforcement submits this Proposed Plan of Distribution (the
“Plan”) to the United States Securities and Exchange Commission (the “Commission”) . . . . This Plan provides for the distribution of a Fair
Fund (the “Fair Fund”) comprised of disgorgement, prejudgment interest, and civil money
penalties paid by Merrill Lynch, Pierce, Fenner & Smith Incorporated (“Merrill Lynch”),1 a
registered broker-dealer and investment adviser, and Harvest Volatility Management LLC
(“Harvest Volatility”),2 a registered investment adviser (collectively, the “Respondents”)"
34-104851
17-Feb-2026
Administrative Proceeding
Order Approving Plan of Distribution
The SEC approved a Plan of Distribution for a combined Fair Fund totaling $9.3 million, collected from Merrill Lynch and Harvest Volatility Management for willful violations of the Advisers Act related to excessive, unauthorized option‑strategy exposures imposed on clients. The Fund will compensate harmed investors based on excess management fees tied to the Collateral Yield Enhancement Strategy during 2016--2018, using the allocation methodology in the approved plan. Absent any public comments, the Commission has now formally authorized its implementation.
34-104851-dist-plan
17-Feb-2026
Administrative Proceeding
Plan of Distribution
The SEC's Division of Enforcement submitted and obtained approval for a Plan of Distribution to return a $9.3 million Fair Fund--paid by Merrill Lynch and Harvest Volatility after settling administrative proceedings--to investors harmed by excessive, unauthorized Collateral Yield Enhancement Strategy option‑strategy exposures. The plan outlines the Fund Administrator, plan procedure, eligible investors to be compensated, loss calculation based on excess notional exposure and associated management fees, allocation of funds, etc.
