Tr?id=566623520170033&ev=PageView&noscript=1

ÍøÆØ³Ô¹Ï

Merrill Lynch Advisor Sanctioned for Unauthorized Trading

Posted on March 24th, 2025 at 2:58 PM
Merrill Lynch Advisor Sanctioned for Unauthorized Trading

From the desk of Jim Eccleston at ÍøÆØ³Ô¹Ï

FINRA has fined a former Merrill Lynch advisor $5,000 and suspended the advisor for 30 days for executing unauthorized trades in client accounts. AdvisorHub reports that the advisor accepted the sanctions without admitting or denying FINRA’s findings.

The settlement agreement, known as an Acceptance, Waiver, and Consent (“AWC”), reflects that the advisor placed 204 unauthorized trades across four customer accounts, three of which belonged to senior investors. Although the advisor discussed investment strategies with the clients, FINRA found that the advisor failed to obtain the required written authorization for non-discretionary accounts. Those actions violated FINRA’s prohibition on unauthorized trading as well as Rule 2010, which requires advisors to uphold high ethical standards.

AdvisorHub reports that the disciplinary action stemmed from a FINRA “cause examination,” an investigation triggered by a complaint or tip.

Since 2022, the advisor has faced nearly two dozen customer complaints, many related to allegations of unsuitable or unauthorized options trading. Merrill Lynch denied 10 of the claims but paid approximately $2.1 million in settlements on 12 others, out of a total of $4.75 million in damages requested.

 

ÍøÆØ³Ô¹Ï LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

I am so blessed to have you and your dynamic team defending me. Your ethics, forward thinking and strategies are amazing.  You guys are the best group of attorneys in the country that I could hire to handle this complicated case.

Cindy C.

LATEST NEWS AND ARTICLES

1783615970 Law
July 9, 2026
FINRA Suspends Former Branch Manager for Supervisory Failures Linked to Excessive Trading and Churning

A former regional branch manager at a broker-dealer has agreed to Financial Industry Regulatory Authority (FINRA) sanctions after the regulator found that he failed to supervise registered representatives who engaged in excessive trading and churning of customer accounts.

1783525964 Law
July 8, 2026
SEC Sanctions David Lerner Associates for Regulation Best Interest Violations

David Lerner Associates has agreed to settle Securities and Exchange (SEC) charges alleging violations of Regulation Best Interest (Reg BI) that resulted in unnecessary costs to retail investors, according to InvestmentNews.

1783434190 Law
July 7, 2026
Private Credit Funds Face Mounting Redemption Pressure as Investor Sentiment Shifts

A surge in investor redemption requests has intensified pressure on private credit funds, raising concerns about liquidity and long-term stability across the asset class, as reported by The Wall Street Journal.