The New York Stock Exchange has ordered Merrill Lynch Pierce Fenner & Smith to pay a $10 million fine for a failure to deliver prospectuses to customers in mutual fund transactions and other supervisory and operational lapses, according to an Aug. report from Dow Jones.

The report says that broker-dealer failed to deliver prospectuses from October 2002 to March 2004 in respect to 64,000 transactions in connection with sales of registered, open-ended mutual fund securities. The firm also failed to deliver prospectuses with respect to about 900 transactions in approximately 275 accounts in auction-rate preferred stocks between January 2004 and July 2004.

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