The Securities and Exchange Commission announced on Wednesday that it has charged Harvest Volatility Management LLC and Merrill Lynch, Pierce, Fenner & Smith Inc., a subsidiary of Bank of America Corp. (BAC), for exceeding their clients' designated investment limits over a two-year period.
The SEC's investigation revealed that these violations resulted in clients incurring higher fees, increased market exposure, and investment losses.
While Harvest and Merrill neither admitted nor denied the SEC's findings, they have agreed to pay a total of $9.3 million in penalties and disgorgement to resolve the matter.
As of now, Bank of America's stock is trading at $38.99, reflecting a 1.17 percent decline on the New York Stock Exchange.
