Merrill Lynch Equities (Australia) Ltd pays an infringement notice penalty

Reason:
Misconduct
Content of Penalty:

Merrill Lynch Equities (Australia) Limited ('MLEA') has paid a total penalty of $140,000 to comply with an infringement notice given to it by the Markets Disciplinary Panel ('the MDP').

The MDP found that between July 2014 and April 2016, MLEA:

  • executed orders contrary to wholesale clients' instructions to opt out of the 'best execution' rule;
  • failed to conduct adequate periodic reviews to ensure that it could comply with those instructions;
  • failed to permit wholesale clients to opt out of its crossing systems by allowing trades to be executed on its crossing system; and
  • entered into transactions on behalf of clients without instructions to do so.

Date: 04/12/2017
Amount: 140000
Link: http://asic.gov.au/about-asic/media-centre/find-a-media-release/2017-releases/17-416mr-merrill-lynch-equities-australia-ltd-pays-140-000-in-infringement-notice-penalty/