Tr?id=566623520170033&ev=PageView&noscript=1

Ä¢¹½´«Ã½

FINRA Fines and Suspends Merrill Lynch Advisor Over Unauthorized Role as Estate Executor

Posted on February 1st, 2024 at 1:26 PM
FINRA Fines and Suspends Merrill Lynch Advisor Over Unauthorized Role as Estate Executor

From the desk of Jim Eccleston at Ä¢¹½´«Ã½ 

Frederick R. Watson, a veteran advisor with 37 years of experience at Merrill Lynch, has been fined $10,000 and suspended for four months by the Financial Industry Regulatory Authority (FINRA). The penalty stems from allegations that Watson served as the executor of a client's estate without obtaining permission from Merrill Lynch.

According to AdvisorHub, Watson began acting as the executor in 2018 following the death of a longtime client. However, he allegedly falsely claimed on internal compliance questionnaires that he was not engaged in such a role. This violation of FINRA's outside business activity rule occurred without prior authorization from Merrill Lynch, preventing advisors from taking on roles with a "reasonable expectation of compensation" without firm approval. Although Watson sought compensation for his executor duties, he reportedly did not receive payment.

Merrill Lynch became aware of the situation in September 2019 when an estate beneficiary filed a lawsuit against Watson. In response, Merrill issued a written warning and reported the incident to FINRA, leading to the regulatory investigation that resulted in Watson's fine and suspension.

 

Ä¢¹½´«Ã½ LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, finra

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

As a financial advisor with over 20 years of experience, I feel fortunate to call Jim my attorney and friend. He is a fantastic lawyer and trusted advisor. He is skilled in the matters necessary to do the job well. He uses his thoughtful approach and calm demeanor to achieve a positive outcome for the client. If you want to feel confident that nothing will be missed and that you will be represented in a highly professional manner, call Jim Eccleston.

Bill C. and Dan M.

LATEST NEWS AND ARTICLES

1786980584 Law
August 17, 2026
Federal Judge Allows Investor Class Action Over Lightstone REIT Disclosures to Proceed

A federal judge has allowed investors to proceed with a class-action lawsuit alleging that directors and advisors of three Lightstone Value Plus REITs failed to disclose a significant conflict of interest before shareholders voted on amendments extending the funds' operating periods.

1786734880 Law
August 14, 2026
Cash Sweep Litigation Continues to Drive Legal Costs

Cash sweep litigation continues to increase legal costs for wealth management firms despite the Securities and Exchange Commission's (SEC) decision under the Trump administration to close pending investigations without imposing enforcement penalties, according to AdvisorHub.

1786636784 Law
August 13, 2026
FINRA Orders Centaurus Financial to Pay $1.1 Million Over Variable Annuity Supervision Failures

The Financial Industry Regulatory Authority (FINRA) has ordered Centaurus Financial Inc.