Merrill Lynch ETF Losses?

May 2, 2012

The Financial Industry Regulatory Authority recently fined Merrill Lynch because:

FINRA found that from January 2008 through June 2009, the firms did not have adequate supervisory systems in place to monitor the sale of leveraged and inverse ETFs, and failed to conduct adequate due diligence regarding the risks and features of the ETFs. As a result, the firms did not have a reasonable basis to recommend the ETFs to their retail customers. The firms’ registered representatives also made unsuitable recommendations of leveraged and inverse ETFs to some customers with conservative investment objectives and/or risk profiles. Each of the four firms sold billions of dollars of these ETFs to customers, some of whom held them for extended periods when the markets were volatile.

If you lost money investing with Merrill Lynch, please contact Jeffrey Salas at 312.803.4963, or fill out the contact form below.

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