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

Defendant Type: Subsidiary of Public Company

Document Reference: 2024-147

Document Details

Legal Case Name In the Matter of Merrill Lynch, Pierce, Fenner & Smith Incorporated
Document Name SEC Charges Merrill Lynch and Harvest Volatility Management for Ignoring Client Instructions
Document Date 25-Sep-2024
Document Format Administrative Proceeding
File Number 3-22173
Allegation Type Investment Advisers/Investment Companies
Document Summary 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."

Disgorgement & Penalty Information

Resolutions
Cease and Desist Order
Censured
Monetary Penalties:

Disgorgement

Individual:     $2,800,000.00 Shared:    

Civil Penalty

Individual:     $1,000,000.00 Shared:    

Pre-Judgment Interest

(Penalty was noted in document, but no amount was listed)

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."
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."
34-102527_3-22173 05-Mar-2025 Administrative Proceeding
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."

Related Actions:

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