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Bank of America is fined $5 million by FINRA for failing to disclose options positions

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Bank of America (NYSE:BAC) was fined $5 million by the Financial Industry Regulatory Authority (FINRA) for failing to report OTC options on ~7.42 million occasions, according to Monday. liberation.

BofA Securities option position reporting errors occurred between January 2009 and October 2020, FINRA said, noting that they included 26 positions that exceeded the applicable OTC position limit of 25,000 or 50,000 contracts.

FINRA added that the firm’s supervisory system “was not reasonably designed to meet” reporting obligations on the regulator’s Large Options Positions Reporting (“LOPR”) platform from January 2014 to October 2020.

In sum, BofA agreed to settle with FINRA without admitting or denying the allegations. The regulator also introduced an assessment.

“FINRA relies on accurate transaction reporting to maintain the integrity of the markets,” said Jessica Hopper, executive vice president and head of FINRA’s Division of Enforcement. “BofAS’s failure to report millions of OTC options positions prevented FINRA from performing this essential function for transactions that carry significant risk.”

In mid-July, BAC fined $225 million for the failed payment unemployment benefit.

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