Merrill Lynch fined $45.5 million for failing to report trades

Bank of America unit omitted two years' worth of transactions, incurring a U.K. penalty under European markets regulations.
OCT 23, 2017
By  Bloomberg

Bank of America Corp.'s Merrill Lynch was fined 34.5 million pounds ($45.5 million) for failing to report two years' worth of exchange-traded derivatives transactions, making the bank the first in the U.K. to pay a penalty on that type of trades under the European Markets Infrastructure Regulation. The bank failed to report 68.5 million exchange traded derivative transactions, starting in Feb. 2014, the U.K.'s Financial Conduct Authority said Monday. European transparency rules came into force from 2012 to reduce risks in the derivatives market, and force banks to report the trades. Bank of America cut the fine by settling at an early stage of the probe. The FCA has penalized several firms for reporting and systems and controls failures in recent years. Last week, Rio Tinto Plc was fined 27.4 million pounds for breaching listing disclosure rules when it acquired a Mozambique asset in 2011. In January, Deutsche Bank AG was fined 163 million pounds for serious failings around its anti-money laundering controls that allowed it to transfer about $10 billion from unknown clients out of Russia to offshore accounts. "Effective market oversight depends on accurate and timely reporting of transactions," Mark Steward, FCA executive director of enforcement and market oversight, said. "It is vital that reporting firms ensure their transaction reporting systems are tested as fit for purpose, adequately resourced and perform properly. There needs to be a line in the sand." A spokeswoman for Bank of America said it had since "re-evaluated and improved" its processes. She said the bank told the FCA as soon as it realized that some trades hadn't been reported as required under the European Markets Infrastructure Regulation. The incident didn't have a financial impact on clients, she said. FCA fines for this year have totaled 190.8 million pounds.

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.