News

Law

Asset Management

Investment Banking

Wealth

Hedge Funds

People

Newsletters

Events

Lists

Investment Banking

BAML settles charges over brokers selling IPOs to family members

Bank sanctioned $6m by Finra for selling shares in companies they were helping to take public to industry insiders

BAML settles charges over brokers selling IPOs to family members
Photo: iStockPhoto

Merrill Lynch settled claims some of its financial advisers sold shares in companies the investment bank was helping to take public — including Facebook and LinkedIn — to family members and business associates, violating a rule meant to prevent such sales, a regulator said Thursday.

Merrill sold shares to family members and contacts who were brokers at other firms 1,462 times between 2010 and this past March, according to the Financial Industry Regulatory Authority.

WSJ Logo