From CNBC: 2024-09-25 10:46:17

The Securities and Exchange Commission charged Harvest Volatility Management and Merrill Lynch for exceeding clients’ investment limits by $9.3 million over two years. Harvest’s trading of options in a volatility index led to accounts surpassing exposure levels set by investors, with Merrill receiving compensation from Harvest for connecting clients. Both companies neglected policies to alert investors of risks. SEC found they failed basic duties to clients, holding Merrill and Harvest accountable for financial exposure exceeding limits set by investors. Bank of America, owner of Merrill, did not respond to comment on the charges or settlement.

Read more: SEC charges Merrill Lynch and Harvest for ignoring client instructions