When communicating online or investing with any professional, make sure you know who you’re dealing with. Imposters might link to sites like BrokerCheck from phishing or similar scam websites, or through social media , trying to steal your personal information or your money. Please contact FINRA with any concerns.
THE CUSTOMER CLAIMS THAT TRANSACTIONS ON MAY 1, 2009 WERE NOT AUTHORIZED BY THE TRUSTEES.
Settlement Amount
$3,106.45
Broker Comment
REG REP RESPONSE: THIS DISPUTE IS THE RESULT OF EXECUTION PROBLEMS AND A COMMUNICATIONS LAPSE BETWEEN MERRILL LYNCH RETIREMENT GROUP, ME (JAMES A WYNNE), MY ASSISTANT, AND THE TRUSTEES OF A 12 PARTICIPANT 401K PLAN. THE MERRILL LYNCH RETIREMENT GROUP PLAN PROTOTYPE CALLED FOR A MANDATORY, MANUAL CONVERSION OF MUTUAL FUNDS FROM CLASS B SHARES TO CLASS A SHARES AT THE 10 YEAR ANNIVERSARY OF THE PLAN IMPLEMENTATION, AT NO COST TO THE PARTICIPANTS. MERRILL LYNCH RETIREMENT GROUP INSTRUCTED MY ASSISTANT TO EXECUTE THE CONVERSION, BUT DID NOT INFORM HER OF ALTERNATIVE METHODS THAT WOULD HAVE ENABLED THE CONVERSION TO TAKE PLACE OVER ONE MARKET DAY. THE ASSISTANT FOLLOWED THE INSTRUCTIONS OF THE RETIREMENT GROUP, AND THE CLASS B FUNDS WERE SOLD ON FRIDAY AND REPURCHASED AS A SHARES (AT NAV) THE FOLLOWING MONDAY. UNFORTUNATELY IN THIS CASE, THE MARKETS RALLIED SIGNIFICANTLY THE DAY THE ACCOUNTS WERE NOT INVESTED. MY U4 WAS MARKED FOR THIS INCIDENT BECAUSE I DID NOT COMMUNICATE IN ADVANCE TO THE CLIENTS THAT THE CONVERSION PROCESS WAS TAKING PLACE. BECAUSE THE CONVERSION WAS MANDATORY, RETIREMENT GROUP INITIATED, AND DESIGNED TO REDUCE THE PARTICIPANTS' EXPENSES, AND SINCE THERE WERE NUMEROUS PARTICIPANTS WHO IN SOME CASES WERE DIFFICULT TO REACH, I ALLOWED THE CONVERSION TO TAKE PLACE WITHOUT NOTIFYING THEM IN ADVANCE.
Disclosures can be customer complaints or arbitrations, regulatory actions, employment terminations, bankruptcy filings and certain civil or criminal proceedings that they were a part of.
Disclosures can be customer complaints or arbitrations, regulatory actions, employment terminations, bankruptcy filings and certain civil or criminal proceedings that they were a part of.