The Financial Services Authority (FSA) has fined Merrill Lynch International £150,000 for failing to accurately report certain transactions to the FSA and previously the Securities and Futures Authority.
Between September 1996 and January 2006, Merrill Lynch executed an estimated 1.2 million transactions in non-UK European equities. These transactions were incorrectly reported because they showed the firm's status as 'agent' rather than 'principal'. This was because the transaction reporting system was set to report trades from the client's perspective rather than the firm's perspective. The error in the transaction reporting system was not spotted by Merrill Lynch until December 2005. This was despite the firm's increased focus on transaction reporting issues following a private warning...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
