That rule is intended to safeguard clients' cash and securities so they can be promptly returned should the broker-dealer fail.
Advisers produced average annualized revenue of $1 million in the period.
This is at least the second time this fall that Merrill has had a high-profile termination over improper expense reporting.
Brokers will be expected to provide two referrals a year to the bank or face a 1% penalty on their payout. <b><i>(More: <a href="//www.investmentnews.com/article/20161011/FREE/161019987/morgan-stanley-sales-contests-among-advisers-didnt-help-clients"" target=""_blank"" rel="noopener noreferrer">Morgan Stanley sales contests among advisers didn't help clients</a>)</b></i>
The company, formerly known as Franklin Square, filed a registration with the SEC Monday for a $2.5 billion commercial mortgage nontraded real estate investment trust.
Arraigned in federal court Wednesday, Brian S. Block's trial date is set for May 15.
The sale of the assets includes 350 advisers and operates under the broker-dealer holding company Legend Group Holdings.
Securities attorneys say prosecutors may try to 'flip' indicted CFO Brian S. Block to get to former REIT czar. <b><i>(More: <a href="http://www.investmentnews.com/article/20150921/FEATURE/150919894/how-nick-schorsch-lost-his-mojo"_blank">How Nick Schorsch lost his mojo</a>)</i></b>
Henry Al Dean Watson failed to show up during inquiry into arbitration claim alleging excessive trading and commissions, unauthorized trades and portfolio mismanagement.
