Merrill Lynch and harvest volatility management were charged with ignoring clients’ instructions by the SEC on Wednesday, resulting in a combined fine and disgorgement of $9.3 million.
The companies had exceeded clients’ designated investment limits over a two-eay period starting in 2016 resulting in clients paying higher fees, being subjected to increased market exposure and making losses.
“In this case, two investment advisers allegedly sold a complex options trading strategy to their clients, but failed to abide by basic client instructions or implement and adhere to appropriate policies and procedures,” said Mark Cave, Associate Director of the SEC’s Enforcement Division.
The companies will pay a combined $6.3 million for disgorgement and interest while their penalties amount to a combined $3 million.
By Staff
