Merrill Lynch, Pierce, Fenner & Smith, Inc.
Merrill Lynch Fined $14 Million for Improper Mutual Fund Sales
The NASD fined Merrill Lynch $14 million suitability and supervisory violations relating to the sale of Class B mutual fund shares. The fines arose from Merrill Lynch’s sales of Class B shares of mutual funds that involved higher fees and were less advantageous to investors than in Class A shares of the same mutual fund had been sold.
Merrill Lynch Ordered to Pay Customers $30.6 Million
A FINRA arbitration panel ordered Merrill Lynch to pay an investor $30.6 million to compensate the investor for damages suffered as a result of Merrill Lynch’s misconduct. The investor asserted causes of action for negligence, breach of contract, misrepresentation, and breach of fiduciary duty related to recommendations and sales of the Sphinx Managed Futures Index Fund LP.