Hong Kong's securities regulator fined two units of Bank of America Merrill Lynch a total of HK$15 million over internal control failures.
The Securities and Futures Commission said March 24 that an investigation found lapses in Merrill Lynch Far East Ltd.'s reporting of large open positions since May 2006. In addition, the company failed to disclose that it was a market maker in relevant securities in research reports distributed to clients between May 2011 and November 2016.
Meanwhile, Merrill Lynch (Asia Pacific) Ltd. failed to obtain a license before carrying on business in advising on futures contracts between May 2005 and August 2016.
The fine took into consideration that the companies self-reported the errors and cooperated with the commission for the early resolution of the issues.
Bank of America Merrill Lynch is the marketing name for the global banking and global markets businesses of Bank of America Corp.