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FINRA Sanctions Merrill Lynch $7 Million for Inadequate Supervision of Securities-Backed Leverage in Customer Brokerage Accounts

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Restitution Also Paid to 22 Customers Who Were Highly Concentrated and Highly Leveraged in Puerto Rican Securities 

WASHINGTON — The Financial Industry Regulatory Authority (FINRA) announced today that it has fined Merrill Lynch, Pierce, Fenner & Smith Inc. $6.25 million and the firm will pay approximately $780,000 in restitution for inadequately supervising its customers’ use of leverage in their Merrill brokerage accounts. 


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