FINRA imposes $175k fine on Merrill Lynch

▤ Summary

FINRA fined Merrill Lynch $175,000 for failing to disclose market discounts on certain municipal bond purchases made through its self-directed platform. The firm also lacked adequate supervisory procedures and written controls to ensure compliant time-of-trade disclosures. Merrill Lynch later updated its procedures and added a market discount disclosure for applicable transactions. The case highlights a compliance lapse in brokerage operations rather than a software or product announcement.

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