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FINRA Fines Merrill Lynch $1.4 Million for Supervisory Deficiencies Related to Extended Settlement T

Financial Industry Regulatory Authority press release -------- The Financial Industry Regulatory Authority (FINRA) announced today that it has fined Merrill Lynch, Pierce, Fenner & Smith Incorporated $1.4 million for failing to establish a reasonable supervisory system and procedures to identify and evaluate extended settlement transactions, and for related rule violations. Extended settlement transactions have a longer time between trade and settlement than routine securities transactions, and therefore involve an extension of credit and exposure to counterparty, credit and market risk. As a result of its supervisory deficiencies, Merrill failed to collect adequate margin to offset this risk, improperly extended credit to cash-account customers, and miscalculated its outstanding margin and net capital. To get more in depth information click on the picture below to read the release.

FINRA Fines Merrill Lynch $1.4 Million for Supervisory Deficiencies Related to Extended Settlement Transactions - Read More from FINRA

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