FINRA Slaps Merrill Lynch with $225,000 Fine Over Complaint Reporting Failures

Merrill Lynch has agreed to pay a $225,000 fine and accept a censure from the Financial Industry Regulatory Authority (FINRA). The settlement addresses failures in the firm's handling of customer complaint reporting.

From January 2018 through December 2023, the firm invited call center customers to complete post-call surveys containing written commentary. FINRA found that Merrill Lynch did not reasonably review these responses to identify customer complaints.

The firm also failed to supervise effectively to ensure compliance with quarterly complaint reporting obligations under FINRA Rule 4530(d). Consequently, thousands of customer complaints within survey responses went unreported to the regulator.

These actions constituted violations of FINRA Rules 4530(d), 3110(a), 3110(b), and 2010. The settlement concludes the regulatory matter.