by vikgru
and this is not even their first rodeo.
In May 2019, Merrill Lynch, Pierce, Fenner & Smith Incorporated (MLPF&S) reorganized into two separate entities – MLPF&S and BofAS. In this reorganization, BofAS acquired MLPF&S’s institutional business.
On December 22, 2014, MLPF&S entered into A WC No.201203224930 I in which
FINRA found that, from May 2012 through November 2013, the firm (with Merrill Lynch Professional Clearing Corp.) violated FINRA Rule 2360(b)(5) by failing to include reportable positions in their Large Options ositions Reporting system (LOPR) submissions and by including inaccurate data in their LOPR submissions. The firms failed to report accounts acting in concert and reported in concert positions but failed to identify them as such for a period of over three years. MLPF&S reported two million positions with incorrect account types and 171,400 positions with incorrect addresses for almost four years, among other violations.
MLPF&S also violated NASD Rule 30 IO and FINRA Rule 20 IO by failing to establish a reasonable system of supervision, including a system of follow-up and review, to achieve compliance with FINRA Rule 2360(6). The firms consented to a censure, a fine of $5,796,000, and a supervisory
undertaking.
On December 15, 2016, MLPF&S entered into AWC No. 20 I 50439998, in which FINRA found that, between January I, 2015 and September I, 2015, MLPF&S exceeded the relevant position limit in two different securities for two different customers for five days in violation of FINRA Rule 2360(6)(3). The firm consented to a censure and fine of $30,000 ($20,000 for position limits violations and$ I 0,000 for related supervisory violations).