Merrill Lynch Proposed FACAAP Class Action Settlement Is Big Disappointment

With liability estimated to be $100 million or more, former Merrill Lynch reps with deferred compensation left behind in plans such as FACAAP, WealthBuilder and Growth Award, might have had something to cheer about.  But there is nothing to cheer about for the estimated 3,500 reps.

A $40 million settlement, before attorneys’ fees and costs, is earmarked only for relatively small producers – about 1,500 reps with less than $500,000 in production.

Left behind are those reps with greater production, and normally greater balances in their deferred compensation plans.  Now, it is not speculation as to whether larger producers will do better pursuing their recovery claims in FINRA arbitration; it is fact.

Further commentary, including my remarks to Investment News, may be found here: http://www.investmentnews.com/article/20120824/FREE/120829945&cslet=UnhOY2lLYjlKL0NZK2lNaXM3T25UUEpycnV6cXVHSEw=

Eccleston Law Offices is representing former Merrill reps in claims to recover their deferred compensation plan assets.  The firm also counsels, represents and defends financial advisers nationwide in regulatory, compliance, disciplinary and employment matters in arbitration and litigation, and before regulatory bodies such as the SEC, FINRA and state securities regulators.  We frequently defend forgivable loan collection actions, prosecute Form U-5 defamation actions, counsel advisers as to how to transition successfully from firm to firm and negotiate the best possible agreements with their new firm, and provide succession planning, buy-sell agreements and other exit strategies and strategic consulting, practice transitions, mergers, acquisitions and divestitures.

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