Merrill Lynch got hammered by FINRA once again this week. FINRA fined Merrill Lynch, Pierce, Fenner & Smith $1 million for failing to arbitrate disputes with employees relating to retention bonuses. Merrill Lynch brokers who participated in the bonus program had to sign a promissory note that prevented them from arbitrating disagreements relating to the note, forcing the registered representatives to resolve disputes in New York state courts. This action is ironic since it is Merrill Lynch that places a a mandatory, binding arbitration award in all of its new account applications and contracts with clients. Usually, Merrill wants to be in arbitration as opposed to court. Merrill Lynch likely wasn't as concerned with what may be disclosed in employment actions involving brokers as it is with what may be discovered in court when a client sues the firm. The entire release can be viewed at the link below.
http://www.finra.org/Newsroom/NewsReleases/2012/P125455
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