Two units of Merrill Lynch were fined $6 million and censured by FINRA for violating short-selling regulations.
In a release, the regulator stated Merrill Lynch Professional Clearing Corp. was fined $3.5 million for breaking an anti-short selling SEC rule and Merrill Lynchs broker-dealer fined $2.5 million for inadequate controls against such activity.
In these cases, each firm's failure to establish systems and procedures to properly close out its fail-to-deliver positions could have potentially negative market impact, which could harm investors, said Brad Bennett, FINRA's Executive Vice President and Chief of Enforcement, in a statement.
Merrill Lynch did not respond to a request for comment.
They are the latest million-dollar fines levied against the firm by FINRA. In June, FINRA fined Merrill $8 million and ordered it to pay back $24.4 million to retirement accounts and charities for allegedly overcharging for mutual fund fees, and $1 million for submitting incorrect data on trade-related transactions.
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