Merrill Lynch and Harvest Volatility Management to Pay $9.3M for SEC Violations

The firms exceeded investment limits, leading to higher fees and losses for clients over a two-year period.

The SEC found that Merrill Lynch and Harvest Volatility Management ignored client investment limits from 2016, causing increased financial exposure.
Both companies have agreed to pay a combined $9.3 million in penalties without admitting or denying the findings.
The penalties include recovery of over $6 million in excess fees charged to clients.
Merrill Lynch introduced clients to Harvest and received part of Harvest's management and incentive fees.
The SEC criticized the firms for neglecting to follow basic client instructions and failing to implement necessary policies and procedures.