FINRA Fines Firm for Fair Pricing and Supervisory Violations Related to the Purchase of Distressed Securities

FINRA fined Merrill Lynch for fair pricing and supervisory violations in connection with retail customer transactions in distressed securities over a two-year time period.

FINRA found that the firm's Trading Desk purchased notes from retail customers at prices below that of the prevailing market. FINRA also found that the firm did not have an adequate supervisory system in place to detect whether the firm's Credit Desk executed a retail customer transaction at a price that was consistent with the prevailing market price of that security.

See: FINRA Press Release.