Merrill to pay $400,000 over telemarketing compliance shortfall

New Hampshire Bureau of Securities Regulation says B-Ds do not 'fully understand' how to comply with telemarketing rules.
MAR 23, 2015
Who says cold calling is dead? Bank of America Merrill Lynch has agreed to pay $400,000 to as part of a settlement with the New Hampshire Bureau of Securities Regulation over allegations it improperly solicited business by phoning residents who were not clients and were on do-not-call lists. The bureau's investigation, which was based on complaints filed with the Federal Trade Commission, found that Merrill Lynch brokers had phoned residents who were not clients and whose numbers appeared on Merrill Lynch's own internal do-not-call list or the FTC's Do Not Call registry. It is the second such payment this year in the state, after Edward Jones & Co.'s $750,000 settlement in February. “Many of the bureau's investigations have revealed that broker-dealers do not fully understand the extent of the rules and how to effectively establish procedures to ensure compliance with them,” the bureau's staff attorney, Adrian La Rochelle, said in a statement. As part of the settlement, Merrill Lynch agreed to enhance its telemarketing policies and procedures. “During the course of its investigation, the bureau determined that Merrill Lynch did not reasonably supervise the telemarketing activities of its agents licensed in New Hampshire,” the bureau said in a news release. New Hampshire has been on a campaign against improper telemarketing. This was the sixth “significant telemarketing investigation in as many years,” according to a statement from a bureau staff attorney, Eric Forcier. A spokesman for Merrill Lynch, William Halldin, said the company is "committed to ensuring that all our New Hampshire employees respect the preferences of their fellow residents who have indicated that they don't want to be contacted." Merrill Lynch has strengthened its internal controls "to help prevent any inappropriate calls in the future," he added.

Latest News

Merrill to pay $39 million in cash sweep settlement
Merrill to pay $39 million in cash sweep settlement

The financial advice industry has been facing inquiries into its cash sweep programs for years now.

SEC accuses fund advisor of defrauding SpaceX, OpenAI investors
SEC accuses fund advisor of defrauding SpaceX, OpenAI investors

Investor money allegedly went to strip clubs, exotic cars, and landscaping

RIA moves: Savant enters Thousand Oaks as Procyon lands in New Jersey
RIA moves: Savant enters Thousand Oaks as Procyon lands in New Jersey

Procyon adds $415 million in assets under management in New Jersey while Savant picks up a $213 million Southern California planning firm

Beyond sell or inherit: A third exit for appreciated property
Beyond sell or inherit: A third exit for appreciated property

With a growing number of real estate-rich Baby Boomers aging into retirement, some advisors may be failing to consider all the options available for those clients' assets.

AI marketing adoption gap costs financial firms revenue
AI marketing adoption gap costs financial firms revenue

Cornerstone Advisors study reveals compliance bottlenecks stall campaigns weeks after customer opportunities close.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains