privaTe BanKing and inveSTMenT groUpDocument Transcript
privaTe BanKing and inveSTMenT groUp
QUarTerlY STaTeMenT diSCloSUreS
Helping ClienTS Move Forward
Through a relationship with a dedicated Merrill Lynch Private Wealth Advisor, clients have
always had access to an array of products and solutions designed to address their financial
needs. Now, with the combination of Bank of America and Merrill Lynch, Merrill Lynch
Private Wealth Advisors can provide access to an even more sophisticated suite of capabilities
and expertise to help clients achieve their goals and keep them moving forward.
Merrill Lynch Private Wealth Advisors can provide access to these combined resources,
whether clients are looking for capital, a bank account that can help their idle cash be more
productive without compromising its safety, or a retirement planning strategy that suits their
“We have been able to bring Bank of America, N.A.’s suite of banking and credit products
to add to what Merrill Lynch already has,” says
Dean Athanasia, Head of Americas Banking Contents
and Personal Retirement Solutions for Bank of 2009-2010 required Minimum
America. “That helps give clients customized distribution reminder ....................................3
answers for their needs that draw upon some of important Changes regarding
the industry’s highest quality products. And it wire Transfers...............................................4
helps Merrill Lynch Private Wealth Advisors act Merrill lynch Balance Sheet
as better advocates for clients.” available online ...........................................4
important information on eTFs and
A Merrill Lynch Private Wealth Advisor is Mutual Funds ...................................................4
part of an expanded team that includes Wealth our Continued Commitment to Third-party
Management Bankers and Banking Product equity research ..........................................5
Specialists, whose deep knowledge of the com- important notice: Fee Change for
bined company’s offerings can help them find delivery of Securities .....................................5
solutions tailored to help fit client needs. And in annual Fee for individual
the months ahead, Merrill Lynch Private Wealth investor accounts .........................................5
Advisors will keep their clients updated on inno- important notice to Clients who are
vative solutions designed to make a difference in executive officers, directors and Control
owners of U.S. public Companies
their financial life. It’s all part of Merrill Lynch’s
(Section 16 affiliates) ..................................6
commitment to helping you stay one step ahead.
UpdaTe regarding iMporTanT CHangeS To THe U.S. Merrill lYnCH BanKS
As part of the ongoing integration of Merrill Lynch & Co., Inc. with Bank of America
Corporation, we are committed to keeping you informed about any changes that affect your
accounts and services. With this in mind, we want to let you know that we are continuing with
our plans to replace Merrill Lynch Bank USA (MLBUSA) and Merrill Lynch Bank & Trust
Co., FSB (MLBT-FSB) in certain Merrill Lynch deposit, credit and card programs (specifically
including the various Merrill Lynch bank deposit programs listed below). This notice amends
the previous notice we sent you in July*. These changes will not affect the
operation of these programs. Please see below for more information about the programs
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UpdaTe regarding iMporTanT CHangeS To THe U.S. Merrill lYnCH BanKS
Continued from page 1
including the effect on FDIC coverage. We will provide you with updates in advance of any further changes.
MLBUSA and MLBT-FSB are the two affiliated Merrill Lynch banks that have participated in the
following deposit, credit and card programs offered to Merrill Lynch clients:
• Merrill Lynch Bank Deposit Program
• Business Deposit Program
• Retirement Asset Savings Programs
• Retirement Bank Account™
• Insured Savings AccountTM (ISA®) Program
• ML Direct MLBUSA Deposit Program
• Certificates of Deposit (CDs) or Market Participation Deposits (MPDs) that were issued by
MLBUSA and MLBT-FSB
• Direct debit and deferred debit Visa® cards
• Overdraft advances
• oan Management Account® (LMA® account)
*The only changes from the previous notice are: (i) all deposits held at MLBT-FSB will be redirected and deposited
with Bank of America Rhode Island, N.A. (BA-RI) instead of Bank of America North Carolina N.A. (BA-NC),
and (ii) this change is expected to occur on or after Nov. 2, 2009 instead of Oct. 1, 2009.
Deposit Programs, CDs and MPDs
On July 1, 2009, MLBUSA merged into Bank of America, N.A. (BANA). All deposits formerly held at
MLBUSA were redirected and deposited with FIA Card Services, N.A. (FIA).
On or after Nov. 2, 2009, MLBT-FSB will be merged into Bank of America, N.A. (BANA). Immediately
before the merger, deposits in the Merrill Lynch Bank Deposit Program, Business Deposit Program,
Retirement Bank Account and the Retirement Asset Savings Program held at MLBT-FSB will be redi-
rected and deposited with Bank of America Rhode Island, N.A. (BA-RI).
For clients with deposits in the ISA Program, on July 1, 2009, FIA assumed the position of MLBUSA in
the bank priority sequence in all geographic ISA regions.
Immediately before the merger of MLBT-FSB into BANA, BA-RI will assume the position of MLBT-FSB
in the bank priority sequence in all geographic ISA regions.
FIA and BA-RI are separately chartered, FDIC-insured institutions and subsidiaries of Bank of America
Corporation, as well as affiliates of Merrill Lynch.
This change does not affect how these deposit programs operate, and your deposits will continue to be
governed by the terms described in your brokerage account agreement. The structure for setting inter-
est rates for the bank deposit programs will remain unchanged, but please note that interest rates may
fluctuate, either down or up, based on economic and business conditions. You may access current yield
information online at www.mymerrill.com or www.newmlol.ml.com or by calling (888) ML RATES
(657-2837) or by contacting your Private Wealth Advisor. Also, you will be notified in advance if there
are any substantial changes in the operation of these bank deposit programs in the future, including any
changes to rate structure.
On July 1, 2009, any CDs and MPDs that were issued by MLBUSA became obligations of BANA. On
the date of MLBT-FSB’s merger into BANA, any CDs or MPDs issued by MLBT-FSB will become
obligations of BANA.
Important information about FDIC coverage
The FDIC currently insures deposit accounts, including CDs and MPDs, up to $250,000** per depositor,
per bank in a given ownership category. Deposits maintained in different categories of legal ownership—
such as individual accounts, joint accounts or retirement accounts—are separately insured by the FDIC,
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UpdaTe regarding iMporTanT CHangeS To THe U.S. Merrill lYnCH BanKS
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up to applicable insurance limits. Deposits in one FDIC-insured bank are insured separately from
deposits in another FDIC-insured bank, up to the applicable limits.
Any CDs or MPDs you held with MLBUSA and hold with MLBT-FSB became, or will become, BANA
deposits after each bank’s respective merger, but will be separately insured from the deposits that you
might have with BANA until the later of: i) the expiration of a six-month grace period from the date of
the merger, or ii) the earliest maturity date after the end of the six-month grace period. Thereafter, any
assumed CDs or MPDs deposits that remain on deposit with BANA will be aggregated with existing
deposits with BANA held in the same ownership category for FDIC insurance purposes. Any deposit at
BANA made after a bank’s merger date will be aggregated with deposits in the same ownership category
that you may have with BANA for FDIC insurance purposes.
Your MLBUSA deposits made pursuant to a bank deposit program became deposits with FIA on
July 1, 2009. Your MLBT-FSB deposits made pursuant to a bank deposit program will become deposits
with BA-RI immediately before the merger of MLBT-FSB into BANA. As a result, any new deposits made
at FIA will be aggregated with such deposits in the same ownership category established at FIA for FDIC
insurance purposes. Since BA-RI does not hold any other customer deposits at this time, your FDIC insur-
ance coverage will not be affected by the merger of MLBT-FSB. Please note that BANA, FIA and BA-RI are
three separately chartered FDIC-insured institutions, which means that deposits at BANA are separately
insured from deposits at FIA and from deposits at BA-RI.
You are responsible for monitoring the total amount of your deposits to determine the extent of insur-
ance coverage available to you on your deposits, including CDs and MPDs. If you have any questions,
or need additional information about how to maximize your deposit insurance coverage, please visit
www.FDIC.gov or contact your Private Wealth Advisor or Merrill Lynch representative.
** For deposit accounts other than personal retirement accounts, the limit is scheduled to change to $100,000 as
of Jan. 1, 2014.
Visa cards, overdraft advances and Loan Management Account
Visa debit and deferred debit cards previously issued by MLBUSA are now issued by BANA and as of the
date of MLBT-FSB’s merger, Visa debit cards issued by MLBT-FSB will be issued by BANA. Overdraft
advances in Merrill Lynch central asset accounts are now provided by BANA. These changes do not oth-
erwise affect the Visa debit and deferred debit cards or the overdraft account feature, and the terms and
conditions of their use will remain as described in your account agreement. Please continue to use your
cards as you do today. Also, BANA became the lender for LMA account credit facilities on July 1, 2009.
If you have questions regarding any of these changes, please call your Private Wealth Advisor or
Merrill Lynch representative.
2009-2010 reQUired MiniMUM diSTriBUTion reMinder
The Worker, Retiree, and Employer Recovery Act of 2008 (WRERA 2008) suspending Required
Minimum Distributions (RMDs) for 2009 will expire on December 31, 2009.
At this time, there are no proposals in Congress to expand this beyond 2009. As a result, all RMD
eligible clients will be required to begin taking a required minimum distribution for the 2010 distribution
year* (based on their 12/31/2009 fair market value).
Individuals who turned 701/2 in 2009 and earlier, must take their 2010 RMD no later than 12/31/2010.
Individuals who turn 701/2 in 2010 have until April 1, 2011 to take their first RMD based on the 2010
Look for enhancements to your Retirement Account statements beginning in January that will provide
you with important RMD information.
*Before deciding what distributions to take from your accounts, we recommend that you review the information
with your tax advisor to ensure that you will satisfy RMD rules.
iMporTanT CHangeS regarding wire TranSFerS
As part of the ongoing integration of Merrill Lynch & Co., Inc. and Bank of America Corporation,
we have changed the US Dollar wire transfer instructions for Merrill Lynch Global Wealth
Clients should immediately begin using the new instructions listed below for all wire transfers to be
credited to their Merrill Lynch accounts:
ABA 026009593 [International Banks can use SWIFT-BIC: BOFAUS3N]
Bank of America, N.A.
100 West 33rd Street
New York, NY
a/c 6550113516 Name: Merrill Lynch
Ref: For final credit [8-digit client account # and name]
These instructions are replacing the previous instructions, which routed wire transfers through
The Bank of New York Mellon or The Northern Trust International.
Note: When wiring funds to Merrill Lynch, please instruct the sending institution to include your Merrill Lynch 8-digit account
number and full account name to avoid delays or the possibility of funds being returned. Please contact your Private Wealth
Advisor, branch office or service center should you have any questions regarding this change.
Merrill lYnCH BalanCe SHeeT availaBle online
The most recent consolidated balance sheet of Merrill Lynch, Pierce, Fenner & Smith Incorporated and its
subsidiaries is now available online at: http://askmerrill.ml.com/mlpfs. You may also request a free copy of
the balance sheet by calling (800) MERRILL (637-7455), and asking to speak to a service representative.
Merrill Lynch, Pierce, Fenner & Smith Incorporated (Merrill Lynch) is required to maintain net capital
in accordance with federal securities regulations. Merrill Lynch’s minimum required net capital is $500
million, pursuant to the rules of the Securities and Exchange Commission (SEC).
At June 30, 2009, Merrill Lynch’s regulatory net capital was $5.004 billion, which is approximately
$4.498 billion in excess of the minimum amount. In addition, Merrill Lynch’s regulatory net capital of
$5.004 billion exceeded the Commodity Futures Trading Commission (CFTC) minimum requirement of
$575 million by $4.428 billion.
For additional information, our most recent annual audit report is available for examination at our head-
quarters at World Financial Center, North Tower, 250 Vesey Street, New York, New York 10281-1220
and at the Northeast Regional Office of the SEC.
iMporTanT inForMaTion on eTFS and MUTUal FUndS
On June 22, 2009 the Financial Industry Regulatory Authority (FINRA) released a Regulatory Notice
regarding risks related to exchange-traded funds (ETFs) and mutual funds that utilize leverage, or are
designed to perform inversely to the index or benchmark they track. The notice highlighted the follow-
• While inverse and leveraged ETFs may be useful in some sophisticated trading strategies, they are highly
complex financial instruments that are typically designed to achieve their stated objectives on a daily basis.
• Due to the effects of compounding, their performance over longer periods of time can differ signifi-
cantly from their stated daily objective.
• Inverse and leveraged ETFs that are reset daily typically are generally unsuitable for retail investors
who plan to hold them for longer than one trading session and the investor should closely monitor their
position as part of a sophisticated trading strategy.
Merrill Lynch accepts unsolicited orders only in these types of ETFs. For more information about risks,
please read the ETF prospectus carefully before investing. A copy of the Mutual Fund Disclosure
Pamphlet can be obtained by calling (800) MERRILL, contacting your Private Wealth Advisor, or
oUr ConTinUed CoMMiTMenT To THird-parTY eQUiTY reSearCH
Merrill Lynch Global Wealth Management provides clients with access to third-party research. While
our industry-leading Banc of America Merrill Lynch research continues to be at the core of the market
information and guidance Private Wealth Advisors offer clients, the availability of third-party research
supplements this information and provides clients with additional perspective on specific investments.
During October 2009, the firm is enhancing its third-party research platform to include ratings, research
and data from Standard & Poor’s. Standard & Poor’s is a world-leading source of credit ratings, indices,
investment research, risk evaluation and data.
Clients can access current third-party research content online at www.mymerrill.com or
www.newmlol.ml.com, and/or with their Private Wealth Advisors. With this enhancement, you will also
begin to see individual ratings from Standard & Poor’s on your statements and online in addition
to Morningstar ratings. Data from Jaywalk is not expected to be available after the end of the year.
Offering third-party research is part of our ongoing commitment to giving you the thought leadership
you have come to expect from Merrill Lynch. Please contact a Private Wealth Advisor with any additional
questions or to learn more about the third-party research platform changes.
iMporTanT noTiCe: Fee CHange For deliverY oF SeCUriTieS
The Depository Trust Company (DTC) is the depository for virtually all U.S. issued corporate securities
held for customers of brokerage firms, banks and trust companies in the United States. Earlier this year,
DTC adopted a procedure whereby it will no longer accept requests from brokerage firms, banks or trust
companies for the issuance of physical stock certificates for U.S. issuers that participate in the Direct Reg-
istration System (DRS). Therefore, whenever a stock certificate registered in client name is submitted for
transfer through Merrill Lynch, DTC now processes it as a DRS statement with the issuer’s transfer agent
instead of issuing a physical stock certificate.
However, not all U.S. issuers have elected to participate in the Direct Registration System (DRS) and
DTC has begun imposing a $500 fee for the issuance of physical stock certificates for U.S. issuers that
do not participate in DRS. Therefore, beginning November 1, 2009, whenever a stock certificate is
requested to be registered in client name or in the name of a third party, the fee for delivering certificates
for these types of issues will be increasing from $50 to $500. This fee will be charged to your
Merrill Lynch account.
In the event you are gifting these securities, you may avoid this certificate fee by transferring the shares
via DTC to the recipient’s brokerage account at another firm or if the recipient has an account at
Merrill Lynch, the transfer can be processed internally by a journal entry.
Please note that approximately 1,100 issuers have chosen not to provide their shareholders with the op-
tion of having their holdings in DRS. It is important to note that a growing list of more than 400 publicly
traded companies in the U.S. no longer offer stock certificates. For more information about DRS, go to
DTC’s website at www.dtc.org and choose “Direct Registration System” under “Asset Services.”
If you plan to request a stock certificate for any reason, please check with your Private Wealth Advisor in
advance to determine if this fee would pertain to your request.
annUal Fee For individUal inveSTor aCCoUnTS
Clients with Individual Investor Accounts are reminded that the account has an annual fee of $65. The
assessment of the annual fee depends on the date on which your account was opened:
• If you opened your account before January 1, 1998, you will be billed in January for the previous
• If you opened your account after January 1, 1998, you will be assessed the fee on or about the
anniversary of the date your account was opened.
The fee will be deducted from your account during the applicable billing cycle. If cash or assets in the
account are insufficient to cover the fee, you will be billed directly.