NYSE Regulation yesterday announced disciplinary actions against four different firms, largely for a variety of supervisory violations.

Merrill Lynch, Pierce, Fenner & Smith Inc. consented, without admitting or denying guilt, to findings of rule violations concerning supervisory procedures. An NYSE hearing officer found that through Sept. 9, 2005, Merrill Lynch failed to have appropriate procedures in place for identifying, registering and supervising locations from which registered representatives were conducting limited business. As a consequence, there were approximately 285 locations that were not properly registered as branch offices. Of these 285 locations, 120 had been in effect longer than two years, with the longest being 17 years.

The NYSE imposed a penalty of a censure and US$400,000 fine. Merrill Lynch consented to the penalty.

Additionally, Electronic Brokerage Systems, LLC consented, without admitting or denying guilt, to findings of trading violations. An NYSE hearing officer found that from September 2003 through June 2004, the firm failed to aggregate thousands of improper odd-lot orders that were introduced by the firm to the NYSE, among other things. The NYSE imposed a penalty of a censure and US$175,000 fine. The firm consented to the penalty.

Wachovia Securities, LLC also consented, without admitting or denying guilt, to findings of violations concerning supervisory procedures regarding employees. Specifically, an NYSE hearing officer found that, from March 2001 through June 2005, Wachovia permitted 36 registered reps to engage in activities requiring registration while their registrations were inactive, due to their failure to comply with continuing education requirements in a timely fashion. The NYSE imposed a penalty of a censure and US$90,000 fine. Wachovia Securities consented to the penalty.

Finally, H&R Block Financial Advisors, Inc. consented, without admitting or denying guilt, to findings of rule violations concerning supervisory procedures. An NYSE hearing officer found that, during 2003, thefirm failed to obtain approval from the NYSE for independent contractors employed at the firm, allowed these independent contractors to perform the duties of registered representatives; permitted an individual who did not have the required registration to directly supervise registered reps; failed to establish an adequate system of follow-up and review to ensure that e-mails were being reviewed according to the firm’s policies; and failed to have an adequate system of follow-up to ensure that its branch managers were not reviewing and approving their own correspondence. The NYSE imposed a penalty of a censure and US$45,000 fine. Again, H&R Block Financial Advisors consented to the penalty.