NASD Says $5 Million is a Proper Fine for Merrill Lynch - Call Center and Sales Contest Violations
Many investors believe that a firm such as Merrill Lynch is beyond reproach. But the facts are otherwise. For example, the NASD recently found that Merrill Lynch has engaged in serious regulatory violations, involving Financial Advisory Centers (or “call centers”).
On March 15, 2006, NASD revealed that it had fined Merrill Lynch $5 million for violations of numerous regulations, including but not limited to “supervisory failures, registration violations, impermissible sales contests and other violations."
The NASD found that people who called these centers were sold proprietary Merrill Lynch securities and most importantly, the salesmen at the call centers were required to only recommend the proprietary products, even if the products were inappropriate for the callers. Better products that were not proprietary to Merrill Lynch could not be recommended. This was because Merrill Lynch makes more money on products that are proprietary.
If you are an investor who purchased an investment after having dealings with a call center representative, you may have valuable legal rights and if you wish to discuss the matter, you may call us at 1-800-306-6010 or contact us online.
On March 15, 2006, NASD revealed that it had fined Merrill Lynch $5 million for violations of numerous regulations, including but not limited to “supervisory failures, registration violations, impermissible sales contests and other violations."
The NASD found that people who called these centers were sold proprietary Merrill Lynch securities and most importantly, the salesmen at the call centers were required to only recommend the proprietary products, even if the products were inappropriate for the callers. Better products that were not proprietary to Merrill Lynch could not be recommended. This was because Merrill Lynch makes more money on products that are proprietary.
If you are an investor who purchased an investment after having dealings with a call center representative, you may have valuable legal rights and if you wish to discuss the matter, you may call us at 1-800-306-6010 or contact us online.
