Merrill Lynch to pay $5mn to settle NASD charges

03/16/06 - newratings.com

NEW YORK, March 16 (newratings.com) – The National Association of Securities Dealers (NASD) Wednesday announced it had fined investment firm Merrill Lynch & Co (MER) $5 million for violating securities rules at its Financial Advisory Centers.

The brokerage regulator said it had levied the fine on Merrill Lynch for "supervisory failures, registration violations, impermissible sales contests and other violations" in connection with the operation of its centers in Hopewell, New Jersey, and Jacksonville, Florida. Apart from paying the fine, Merrill Lynch has agreed to retain an independent consultant to improve policies and procedures, NASD said. Merrill Lynch neither admitted to nor denied any wrongdoing, the securities regulator said.