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

Ä¢¹½´«Ã½

Merrill Lynch Advisor Sanctioned for Unauthorized Trading

Posted on March 24th, 2025 at 2:58 PM
Merrill Lynch Advisor Sanctioned for Unauthorized Trading

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

FINRA has fined a former Merrill Lynch advisor $5,000 and suspended the advisor for 30 days for executing unauthorized trades in client accounts. AdvisorHub reports that the advisor accepted the sanctions without admitting or denying FINRA’s findings.

The settlement agreement, known as an Acceptance, Waiver, and Consent (“AWC”), reflects that the advisor placed 204 unauthorized trades across four customer accounts, three of which belonged to senior investors. Although the advisor discussed investment strategies with the clients, FINRA found that the advisor failed to obtain the required written authorization for non-discretionary accounts. Those actions violated FINRA’s prohibition on unauthorized trading as well as Rule 2010, which requires advisors to uphold high ethical standards.

AdvisorHub reports that the disciplinary action stemmed from a FINRA “cause examination,” an investigation triggered by a complaint or tip.

Since 2022, the advisor has faced nearly two dozen customer complaints, many related to allegations of unsuitable or unauthorized options trading. Merrill Lynch denied 10 of the claims but paid approximately $2.1 million in settlements on 12 others, out of a total of $4.75 million in damages requested.

 

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

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

The work that you and your team have performed on my behalf is exemplary.

JT

LATEST NEWS AND ARTICLES

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.

1786553985 Law
August 12, 2026
Proposed FINRA Enforcement Reforms Draw Mixed Reactions From Industry Participants

A new report recommending changes to the Financial Industry Regulatory Authority's (FINRA) enforcement program has generated mixed reactions from investor advocates, securities attorneys and industry professionals, according to ThinkAdvisor.