Merrill Lynch—Supervision Violations

stockbroker misconduct attorneysMerrill Lynch Fined for Alleged Supervisory Violations Regarding Training Presentation in 2013

Merrill Lynch was recently fined $2.5 million for alleged supervisory violations in connection with a training presentation back in 2013, according to reports from the office of the Secretary of the Commonwealth of Massachusetts William Galvin.

Galvin, whose office oversees securities regulation in the state, alleges that the training session allegedly did not include discussion of fiduciary requirements when commission-based assets are moved to fee-based alternatives.

Mr. Galvin reportedly said that, among other things, during the presentation Merrill financial advisers were being trained in how to double their production by transferring existing customer assets from commission-based brokerage accounts to fiduciary fee-based alternatives.

Over 300 Merrill Staff Attended Meeting in Boston; Brokers Allegedly Encouraged to Overlook Clients’ Best Interest

Galvin, in a recent news release, made the following statement regarding the Merrill training: “Financial advisers may have been encouraged to move their clients’ assets based on their own financial interest rather than their clients’ best interest.”

Furthermore, according to reports from Massachusetts, Mr. Galvin stated that the presentation, which was attended by more than 300 Merrill staff in Boston, including financial advisers, was not reviewed ahead of time by Merrill compliance personnel, in violation of the firm’s policy.

The Peiffer Rosca Wolf Investor Rights Lawyers Often Represent Investors

The Peiffer Rosca Wolf investor rights lawyers often represent investors who lose money as a result of investment misconduct. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of investment misconduct may contact the investor rights lawyers at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.

Alan Rosca (1168 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.