Merrill Lynch Fined $42 Million by SEC for Misleading Clients Over Orders

[kreslik.news]

The Securities and Exchange Commission (SEC), an American regulator, announced this Tuesday that it is fining Merrill Lynch $42 million. The fine or, to use the SEC’s terminology, ‘civil penalty, is the result of the wealth management firm misleading customers over order executions.

From 2008 to 2013, Merrill Lynch continually lied to its clients by stating that it had executed their orders internally. In reality, these orders were being executed at other broker-dealers, including proprietary trading firms and wholesale market makers.

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Internally, the company referred to this process as ‘masking’. The ... (read more)