CFTC: Merrill Lynch to Pay $300,000 for Failure to Promptly Produce Audit Trail Data
September 10 2019 - 04:25PM
Dow Jones News
By Stephen Nakrosis
The U.S. Commodity Futures Trading Commission said Tuesday that
Merrill Lynch, Pierce, Fenner & Smith Inc. will pay $300,000 to
settle charges it failed to produce required records and separately
failed to "supervise its employees and agents to ensure that they
fulfilled the firm's statutory and regulatory obligations to keep
and promptly produce such records."
The CFTC said Merrill Lynch failed to produce reliable audit
trail data requested by the commission's enforcement division. The
CFTC order said these failures led to delays in a CFTC
investigation.
The CFTC order also noted Merrill Lynch took steps to revise its
procedures for responding to regulatory data requests, including
delegating employees to interpret the requests, provide data and
independently assess the procedure and results.
"As this case shows, the CFTC will hold registrants accountable
for their regulatory obligations," said James McDonald, director of
the CFTC's Division of Enforcement. "Recordkeeping requirements are
important for regulatory and enforcement purposes, and the failure
to produce reliable audit trail data here impeded a CFTC
investigation."
A spokesperson for Merrill Lynch said the company had no
comment.
Bank of America Corp. (BAC) is the parent of Merrill Lynch.
--Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
(END) Dow Jones Newswires
September 10, 2019 16:10 ET (20:10 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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