Improper Sales - Merrill Lynch, Pierce, Fenner & Smith Incorporated
This case is closed. You may review eligibility and related claims information for reference only.
Who is eligible for remediation?
Members of at least 23,000 customer households of Merrill Lynch who:
- Between January 1, 2002 and December 14, 2005, purchased, through the firm, either Class B shares in a single mutual fund family totaling at least $50,000, or Class C shares of a single mutual fund family totaling at least $500,000 where the customer incurred an initial sales charge, or at least $1,000,000 in the absence of an initial sales charge. To determine whether the minimum investment thresholds were met, the firm will, for purposes of Class B share remediation, combine Class B share purchases or, for purposes of Class C share remediation, combine Class C share purchases, made during the relevant period by the customer as well as members of the customer's "household," as that term is defined in the Letter of Acceptance, Waiver and Consent ("AWC").
- Note that certain purchases are excluded.
If I am eligible, when can I expect to be contacted regarding remediation?
Within approximately 5 months of the enforcement action of December 14, 2005, you should receive a letter from the firm. In the letter you receive, the firm will explain that it has established a response center to handle customer inquiries, and will provide you with contact information.
What options are available to investors?
The remediation plan does not foreclose your ability to pursue arbitration or mediation if you believe you have suffered losses. You should consult an attorney as to your rights.
- Press Release, NASD Fines Merrill Lynch, Wells Fargo and Linsco $19.4 Million For Improper Sales of Class B and C Mutual Fund Shares.
- Press Release, NASD Fines Citigroup, American Express and Chase More than $21 Million for Improper Sales of Class B and C Shares of Mutual Funds.
- Investor Alert: Class B Mutual Fund Shares: Do They Make the Grade?
- Investor Alerts: Mutual Fund Breakpoints: A Break Worth Taking and Mutual Fund Breakpoints: Are You Owed A Refund?
- FINRA Fund Analyzer allows investors and financial professionals to review fees and potential discounts and understand their impact on fund performance.