FINRA Fines Merrill Lynch, UBS Over Closed-End Fund Sales
The Financial Industry Regulatory Authority (FINRA) has fined Merrill Lynch and UBS Financial Services $250,000 for supervisory failures that led to unsuitable sales of closed-end funds. FINRA also suspended five Merrill Lynch brokers for 15 days and fined them $10,000 for making unsuitable recommendations to clients.
The five Merrill Lynch brokers sanctioned by FINRA include:
- Kenneth C. Iwelumo of the Newark, New Jersey, branch, whose customers suffered losses totaling approximately $563,000.
- Ronald Kemp of the Denver branch, whose customers suffered losses totaling approximately $411,000.
- Joseph Miller of the Springfield, Massachusetts, branch, whose customers suffered losses totaling approximately $130,000.
- John Ong of the New York City branch, whose customers’ suffered losses totaling approximately $350,000.
- Michael Kizman of the Schaumburg, Illinois, branch, whose customers suffered losses totaling approximately $221,000.
UBS was fined $100,000 for similar supervisory failures.
On Jan. 1, 2009, Merrill Lynch was acquired by Bank of America Corp. for $29 billion.
