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Merrill Lynch Hit With $2 Million Fine For Unsuitable Investments

On June 4, 2013, the Financial Industry Regulatory Authority (FINRA) fined Merrill Lynch Pierce Fenner & Smith (successor for Banc of America Investment Services, Inc.) $900,000 and ordered them to reimburse $1.1 million in losses to 214 customers for losses incurred from unsuitable sales of floating-rate bank loan funds. Here is a link to the FINRA news release.

Floating-rate bank loan funds are investments in a portfolio of secured senior loans to companies with below investment-grade credit ratings and are illiquid and subject to various risks. FINRA found that Merrill Lynch suggested investment in these products to customers whose risk tolerance, investment objectives and financial conditions were inconsistent the risks associated therewith.

If you have losses on investments that you believe were unsuitable for you or which you purchased based on the misrepresentations of the broker who made the sale, you may be able to recover all or a part of those losses through FINRA arbitration. Call us for a no charge consultation to discuss your legal rights.

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Rex Securities Law

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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.