NOTE: Stipulations of Fact and Consent to Penalty (SFC); Offers of Settlement (OS); and Letters of Acceptance Waiver, and Consent (AWC) are entered into by Respondents without admitting or denying the allegations, but consent is given to the described sanctions & to the entry of findings. Additionally, for AWCs, if FINRA has reason to believe a violation has occurred and the member or associated person does not dispute the violation, FINRA may prepare and request that the member or associated person execute a letter accepting a finding of violation, consenting to the imposition of sanctions, and agreeing to waive such member's or associated person's right to a hearing before a hearing panel, and any right of appeal to the National Adjudicatory Council, the SEC, and the courts, or to otherwise challenge the validity of the letter, if the letter is accepted. The letter shall describe the act or practice engaged in or omitted, the rule, regulation, or statutory provision violated, and the sanction or sanctions to be imposed.

Merrill Lynch, Pierce, Fenner & Smith Incorporated
AWC/2008015403102

The Firm inaccurately filed a New York Stock Exchange (NYSE) report on a customer’s complaint, and reported the complaint as part of its 351(d) quarterly report but inaccurately reported the complaint as firm-related instead of as a sales practice matter; as a result, it was not required to identify the broker or his assistant, or note the amount in dispute. The firm failed to timely report the complaint on the broker’s Uniform Termination Notice for Securities Industry Registration (Form U5) even though it was aware that the complaint involved the broker and possible sales practice violations. The firm failed to timely file an NYSE Form RE-3 reporting the customer’s complaint.

Merrill Lynch, Pierce, Fenner & Smith Incorporated : Censured; Fined $75,000