Merrill Lynch, Pierce, Fenner & Smith Inc. agreed to pay a fine in excess of US $5.2 million and reimburse customers in excess of US $10.5 million to resolve charges brought by the Securities and Exchange Commission that it failed to supervise its traders and salespersons in connection with their sales of residential mortgage-backed securities to clients. According to the SEC, Merrill Lynch’s alleged violations, which occurred from June 2009 through December 2012, were attributable to having policies and procedures to monitor communications for false and misleading statements but not implementing them specifically to monitor for RMBS transactions, and having policies and procedures dealing with excessive markups, but not meaningfully reviewing RMBS transactions to check for them. The SEC charged that, during the relevant time, Merrill Lynch made false and misleading statements regarding RMBS transactions to customers and/or charged customers excessive, undisclosed markups.