On July 28, 2009, FINRA announced that it fined Merrill Lynch, Pierce, Fenner & Smith, Inc. $150,000 and UBS Financial Services, Inc. $100,000 for alleged supervisory failures relating to unsuitable short-term sales of shares of closed-end funds (“CEFs”) purchased in such funds’ initial public offerings (“IPOs”). According to FINRA, Merrill and UBS failed to provide supervisors with guidance or warning about the potential abuses and disadvantages relating to short-term trading of CEF shares purchased during an IPO and failed to provide their registered persons with adequate guidance or training with respect to the impact of sales charges relating to short-term sales of CEF shares purchased in an IPO. Furthermore, FINRA found that neither Merrill nor UBS had adequate supervisory systems and procedures designed to detect and prevent unsuitable short-term trading of CEF shares.