Merrill Lynch, Pierce, Fenner & Smith Incorporated has agreed to pay a fine of $275,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).

From July 2020 to June 2023, Merrill Lynch accepted market orders for the purchase of shares of equity new issues in the secondary market prior to the commencement of trading of such shares in the secondary market.

As a result, it violated FINRA Rules 5131(d)(4) and 2010.

From July 2020 to present, Merrill Lynch violated FINRA Rules 3110(a) and (b) and 2010 by failing to establish and maintain a supervisory system, including written procedures, reasonably designed to achieve compliance with FINRA Rule 5131(d)(4).

For these violations, Merrill Lynch is censured, fined $275,000, and agreed to undertake corrective action.