Published: March 01, 2011
Zamansky & Associates Investigates Bank of America/Merrill Lynch's NextGen 529 Plans
NEW YORK - (BUSINESS WIRE) - Zamansky & Associates LLC has commenced an investigation of Bank of
America Corp.'s Merrill Lynch unit ("Merrill Lynch" ) over its sales of
529 NextGen College Investing Plan ("NextGen 529 Plan" ) from June 2002
through February 2007 to investors and account-holders. In January 2011,
Merrill Lynch settled with the Financial Industry Regulatory Authority
("FINRA" ) and agreed to a censure and fine of $500,000 for the brokerage
firm's failure to have adequate supervisory systems and procedures in
place with regard to sales of its NextGen 529 Plans.
Merrill Lynch's NextGen 529 Plan is sponsored by the State of Maine and
investors who contributed were eligible for tax deductions only if they
were Maine residents. Residents of states other than Maine were eligible
for local state tax deductions only for contributions made to their own
states' 529 plans. Investors who invested in Merrill Lynch's NextGen 529
Plan may not have been advised of the eligibility and/or benefits of
local state tax deductions if they contributed under their local state
plan and resided outside of Maine. FINRA alleged that Merrill Lynch
failed to ensure that its financial advisors were taking into account
state tax benefits when determining suitability and advising customers
about investing in its NextGen 529 Plan, and it failed to have
sufficient supervisory systems and procedures in place.
FINRA is requiring that Merrill Lynch send a letter to customers to
notify them of this settlement, and extend an offer to roll their 529
plans over into a local state plan with no fees or charges. No
compensation is offered to investors outside of Maine who lost out on
local state tax benefits on their 529 plan contributions.
Learn Your Rights
If you were an investor who contributed to a Merrill Lynch NextGen 529
Plan from June 2002 to February 2007 and who resided outside of Maine,
and would like to discuss your rights, please contact Jake Zamansky at
(212) 742-1414 or jake@zamansky.com.
For information about us, please visit our website at www.zamansky.com.
About Zamansky & Associates
Zamansky & Associates is one of the leading law firms specializing in
securities fraud and financial services arbitration and class action
litigation. We represent both individual and institutional investors.
Our practice is nationally recognized for our ability to aggressively
prosecute cases and recover losses.
Zamansky & Associates LLC
Jake Zamansky, 212-742-1414
jake@zamansky.com
www.zamansky.com
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