MANAGED ACCOUNT ADVISORS LLC

Allegations: BANK OF AMERICA CORPORATION (THE "BANK") VIOLATED CERTAIN BIDDING REQUIREMENTS SET FORTH IN THE TREASURY REGULATIONS RELATED TO CERTAIN INVESTMENT CONTRACTS, AND ENTERED INTO CERTAIN INVESTMENT AND/OR SWAP CONTRACTS (OR PROVIDED BIDS TO ENTER INTO SUCH CONTRACTS) THAT DID NOT REFLECT THE FAIR MARKET VALUE OF THOSE CONTRACTS.

Sanction: Restitution

How it ended: Settled

Summary: ON DECEMBER 8, 2010, THE BANK ENTERED INTO A CLOSING AGREEMENT WITH THE IRS THAT ADDRESSED THE BANK'S VIOLATION OF CERTAIN BIDDING REQUIREMENTS SET FORTH IN THE TREASURY REGULATIONS RELATED TO CERTAIN INVESTMENT CONTRACTS, AND THE BANK'S ENTERING INTO CERTAIN INVESTMENT AND/OR SWAP CONTRACTS (OR PROVIDING BIDS TO ENTER INTO SUCH CONTRACTS) THAT DID NOT REFLECT THE FAIR MARKET VALUE OF THOSE CONTRACTS. THE BANK AGREED TO PAY THE IRS $25,000,000 AS RESTITUTION FOR ARBITRAGE REBATE PAYMENTS AND OTHER AMOUNTS THAT WOULD HAVE BEEN PAYABLE TO THE IRS AS A RESULT OF THE CONDUCT AND THE BANK RECEIVED A RELEASE RELATED TO ITS PARTICIPATION IN, BIDS FOR, OR STATEMENTS OR OMISSIONS RELATED TO ANY CONTRACTS THAT THE BANK BID ON FROM 1998 THROUGH 2006.

Resolved: Dec 8, 2010

Allegations: THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM CONDUCTED A REVIEW CONCERNING VARIOUS TYPES OF ANTI-COMPETITIVE ACTIVITY BY CERTAIN BANK OF AMERICA CORPORATION (THE "BANK") EMPLOYEES IN CONJUNCTION WITH THE SALE OF CERTAIN DERIVATIVE FINANCIAL PRODUCTS TO MUNICIPALITIES AND NON-PROFIT ORGANIZATIONS VARIOUSLY BETWEEN 1998 AND 2003. FOLLOWING THE REVIEW, THE BANK AND THE RESERVE BANK ENTERED INTO A FORMAL WRITTEN AGREEMENT TO ENSURE THAT THE BANK PROACTIVELY AND APPROPRIATELY MANAGES ITS COMPLIANCE RISK RELATED TO CERTAIN COMPETITIVELY BID TRANSACTIONS.

Sanction: Undertaking

How it ended: Settled

Summary: THE BANK HAS ENTERED INTO A WRITTEN AGREEMENT ON DECEMBER 6, 2010, WITH THE RESERVE BANK. UNDER THE TERMS OF THE WRITTEN AGREEMENT, THE BANK HAS AGREED TO SUBMIT A WRITTEN PLAN TO STRENGTHEN BOARD OVERSIGHT OF THE BANK'S COMPLIANCE RISK MANAGEMENT PROGRAM AS IT RELATES TO CERTAIN TYPES OF COMPETITIVELY BID TRANSACTIONS. IN ADDITION, THE BANK AGREED TO SUBMIT A WRITTEN PLAN TO STRENGTHEN THE BANK'S COMPLIANCE RISK MANAGEMENT PROGRAM REGARDING THOSE SAME COMPETITIVELY BID TRANSACTIONS, AND TO PROMPTLY IMPLEMENT THAT PLAN ONCE IT IS APPROVED BY THE RESERVE BANK.

Resolved: Dec 6, 2010

Allegations: ON APRIL 13, 2011, THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM ("FEDERAL RESERVE") ISSUED A CEASE AND DESIST CONSENT ORDER ("CONSENT ORDER") AGAINST BANK OF AMERICA CORPORATION ("BAC"). THE CONSENT ORDER MAKES NO FINDING ON ANY ISSUES OF FACT OR LAW OR ANY EXPLICIT ALLEGATION CONCERNING BAC. THE CONSENT ORDER DESCRIBES A CONSENT ORDER THAT THE OFFICE OF THE COMPTROLLER OF THE CURRENCY ("OCC") AND BANK OF AMERICA, N.A. (THE "BANK"), WHICH IS OWNED AND CONTROLLED BY BAC, ENTERED INTO ADDRESSING AREAS OF WEAKNESS IDENTIFIED BY THE OCC IN LOAN SERVICING, LOSS MITIGATION, FORECLOSURE ACTIVITIES, AND RELATED FUNCTIONS BY THE BANK. THE CONSENT ORDER ALSO STATES THAT THE OCC'S FINDINGS RAISED CONCERNS THAT BAC DID NOT ADEQUATELY ASSESS THE POTENTIAL RISKS ASSOCIATED WITH SUCH ACTIVITIES OF THE BANK. THE CONSENT ORDER DIRECTS THE BOARD OF DIRECTORS OF BAC TO TAKE APPROPRIATE STEPS TO ENSURE THAT THE BANK COMPLIES WITH THE OCC CONSENT ORDER.

Sanction: Cease and Desist

How it ended: Order

Summary: BAC SUBMITTED AN OFFER OF SETTLEMENT TO THE FEDERAL RESERVE. IN THE OFFER OF SETTLEMENT, BAC AGREED TO CONSENT TO THE ENTRY OF THE CONSENT ORDER, WITHOUT THE CONSENT ORDER CONSTITUTING AN ADMISSION BY BAC OR ANY OF ITS SUBSIDIARIES OF ANY ALLEGATION MADE OR IMPLIED BY THE FEDERAL RESERVE IN CONNECTION WITH THE MATTER. THE CONSENT ORDER WAS ISSUED ON APRIL 13, 2011, THE HIGHLIGHTS OF WHICH ARE DESCRIBED ABOVE IN ITEM 7. THE SANCTIONS IMPOSED ARE EXPLAINED ABOVE IN ITEM 12.C.

Resolved: Apr 13, 2011

Allegations: THE SECURITIES AND EXCHANGE COMMISSION ("COMMISSION") ALLEGED THAT BANK OF AMERICA CORPORATION ("BAC"), AS PART OF ITS REGULATORY CAPITAL CALCULATIONS, FAILED TO DEDUCT CERTAIN REALIZED LOSSES ON CERTAIN STRUCTURED NOTES AND OTHER FINANCIAL INSTRUMENTS (THE "NOTES") ISSUED BY MERRILL LYNCH & CO., INC. ("ML&CO.") THAT BAC ASSUMED OR ACQUIRED AS PART OF ITS ACQUISITION OF ML&CO. AND, THEREFORE, BAC OVERSTATED ITS REGULATORY CAPITAL IN ITS FORM 10-Q FILINGS FROM 2009-2014 AND IN ITS FORM 10-K FILINGS FOR FINANCIAL YEARS 2009-2013. THE COMMISSION ALLEGED THAT BAC VIOLATED SECTION 13(B)(2)(A) AND (B) OF THE EXCHANGE ACT.

Sanction: Civil and Administrative Penalt(ies) /Fine(s)

How it ended: Settled

Summary: THE COMMISSION NOTED THAT BAC SELF IDENTIFIED AND SELF REPORTED THE OVERSTATEMENTS AND THE COMMISSION NOTED THAT BAC HAD PROVIDED SUBSTANTIAL COOPERATION TO THE COMMISSION STAFF. THE COMMISSION ALSO NOTED THAT BAC HAD VOLUNTARILY UNDERTAKEN STEPS TO REMEDIATE AND ADDRESS, AMONG OTHER THINGS, THE INADEQUATE BOOKS AND RECORDS AND INTERNAL ACCOUNTING CONTROL DEFICIENCIES THAT WERE THE SUBJECT OF THE PROCEEDING.

Resolved: Sep 29, 2014

Allegations: THE SECURITIES AND EXCHANGE COMMISSION ("COMMISSION") ALLEGED THAT BANK OF AMERICA CORPORATION ("BAC") FAILED TO MAKE REQUIRED DISCLOSURES IN THE MANAGEMENT'S DISCUSSION AND ANALYSIS AND RESULTS OF OPERATIONS ("MD&A") SECTIONS OF PERIODIC FILINGS, RELATED TO KNOWN UNCERTAINTIES AS TO WHETHER CERTAIN COSTS RELATED TO LOANS BAC WOULD ULTIMATELY BE REQUIRED TO REPURCHASE FROM CERTAIN INSURERS WOULD HAVE A MATERIAL EFFECT ON BAC'S FUTURE INCOME FROM CONTINUING OPERATIONS. THE COMMISSION ALLEGED THAT BAC VIOLATED SECTION 13(A) OF THE EXCHANGE ACT AND RULES 12B-20 AND 13A-13 THEREUNDER.

Sanction: Civil and Administrative Penalt(ies) /Fine(s)

How it ended: Settled

Summary: BAC ADMITTED TO CERTAIN FACTS SET OUT IN AN ANNEX TO THE ADMINISTRATIVE ORDER, ACKNOWLEDGED THAT ITS CONDUCT SET FORTH IN THE ANNEX TO THE ADMINISTRATIVE ORDER VIOLATED THE FEDERAL SECURITIES LAW AND ADMITTED TO THE COMMISSION'S JURISDICTION OVER IT AND THE SUBJECT MATTER OF THE PROCEEDINGS.

Resolved: Aug 21, 2014

Allegations: ON MAY 20, 2015, THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM ("FRB") ISSUED AN ORDER TO CEASE AND DESIST AND ORDER OF ASSESSMENT OF A CIVIL MONEY PENALTY AGAINST BANK OF AMERICA CORPORATION ("BAC") RELATING TO ITS FOREIGN EXCHANGE ("FX") ACTIVITIES ("ORDER") FROM 2008 THROUGH 2013. THE ORDER STATES THAT (A) BAC LACKED ADEQUATE FIRM-WIDE GOVERNANCE, RISK MANAGEMENT, COMPLIANCE AND AUDIT POLICIES AND PROCEDURES TO ENSURE THAT CERTAIN OF THE FIRM'S FX ACTIVITIES COMPLIED WITH SAFE AND SOUND BANKING PRACTICES, APPLICABLE U.S. LAWS AND REGULATIONS, INCLUDING POLICIES AND PROCEDURES TO PREVENT POTENTIAL VIOLATIONS OF THE U.S. COMMODITIES, ANTITRUST AND CRIMINAL FRAUD LAWS, AND APPLICABLE INTERNAL POLICIES; (B) BAC'S DEFICIENT POLICIES AND PROCEDURES PREVENTED BAC FROM DETECTING AND ADDRESSING PERIODIC CONDUCT BY BANK OF AMERICA, N.A.'S TRADERS RELATING TO CERTAIN COMMUNICATIONS BY THESE TRADERS; AND (C) AS A RESULT OF DEFICIENT POLICIES AND PROCEDURES DESCRIBED ABOVE, BAC ENGAGED IN UNSAFE AND UNSOUND BANKING PRACTICES.

Sanction: Civil and Administrative Penalt(ies) /Fine(s)

How it ended: Settled

Summary: [CONTINUED FROM 12.C. ABOVE] (F) BAC SHALL NOT IN THE FUTURE DIRECTLY OR INDIRECTLY RETAIN ANY INDIVIDUAL AS AN OFFICER, EMPLOYEE, AGENT, CONSULTANT, OR CONTRACTOR OF BAC OR OF ANY SUBSIDIARY WHO, BASED ON THE INVESTIGATIVE RECORD COMPILED BY U.S. AUTHORITIES, PARTICIPATED IN THE MISCONDUCT UNDERLYING THE ORDER, HAS BEEN SUBJECT TO FORMAL DISCIPLINARY ACTION AS A RESULT OF BAC'S INTERNAL DISCIPLINARY REVIEW OR PERFORMANCE REVIEW IN CONNECTION WITH THE CONDUCT, AND HAS EITHER SEPARATED FROM BAC OR ANY SUBSIDIARY THEREOF OR HAD HIS/HER EMPLOYMENT TERMINATED IN CONNECTION WITH THE CONDUCT. IN SETTLEMENT OF THIS MATTER, BAC CONSENTED AND AGREED TO THE ISSUANCE OF THE ORDER, WHICH THE FRB HAS DETERMINED TO ACCEPT AND HAS ISSUED. THE ALLEGATIONS, DISPOSITIONS, FINDINGS AND SANCTIONS OF THE ORDER ARE DESCRIBED ABOVE IN ITEMS 7 AND 12.

Resolved: May 20, 2015

Allegations: THE MAS TOOK ADMINISTRATIVE ACTION AGAINST BANK OF AMERICA, NATIONAL ASSOCIATION (SINGAPORE BRANCH) ("BANA SINGAPORE") AND EIGHTEEN OTHER BANKS IN THE MARKET FOR DEFICIENCIES IN GOVERNANCE, RISK MANAGEMENT, INTERNAL CONTROLS, AND SURVEILLANCE SYSTEMS FROM 2007 TO 2011 RELATED TO THE SUBMISSION PROCESSES FOR SINGAPORE DOLLAR INTEREST RATE BENCHMARKS - SPECIFICALLY, SIBOR AND SOR - AND FOREIGN EXCHANGE SPOT BENCHMARKS IN FOUR EMERGING MARKET ASIAN CURRENCIES. IN ADDITION, THE MAS DETERMINED BANA SINGAPORE PERSONNEL ENGAGED IN ELECTRONIC COMMUNICATIONS IN WHICH THEY INITIATED, RECEIVED, ACKNOWLEDGED, OR RELAYED REQUESTS TO IMPROPERLY INFLUENCE SUBMISSIONS FOR CERTAIN OF THE ABOVE-REFERENCED ABS BENCHMARKS. THE MAS STATED IT HAD NOT MADE THE FINDING THAT THE ABS BENCHMARKS HAD BEEN MANIPULATED BY ANY OF THE NINETEEN BANKS SUBJECT TO ITS ORDER, BUT FOUND THAT THE ACTION OF THE BANA SINGAPORE (AND OTHER BANKS') PERSONNEL REFLECTED A LACK OF PROFESSIONAL CONDUCT AND INTEGRITY.

Sanction: Censure

How it ended: Other

Summary: ON JUNE 13, 2013, THE MAS SENT BANA SINGAPORE A LETTER SETTING FORTH: (I) CERTAIN CONCLUSIONS REGARDING THE DEFICIENCIES THE AMS IDENTIFIED IN THE REVIEW REPORTS AND RELATED DOCUMENTATION BANA SINGAPORE HAD SUBMITTED TO THE MAS REGARDING THE ABS REFERENCE RATES; (II) DIRECTING BANA SINGAPORE, PURSUANT TO SECTION 49(2) OF THE SINGAPORE BANKING ACT, TO TAKE CERTAIN MEASURES TO ADDRESS GOVERNANCE AND CONTROL DEFICIENCIES; AND (III) DIRECTING BANA SINGAPORE, PURSUANT TO SECTION 38(1) OF THE SINGAPORE BANKING ACT, TO MAINTAIN AN ADDITIONAL STATUTORY RESERVE OF 700 MILLION SINGAPORE DOLLARS (APPROXIMATELY US$551 MILLION) WITH THE MAS FOR A PERIOD OF ONE YEAR. ON JUNE 14, 2013, THE MAS MADE A PUBLIC ANNOUNCEMENT REGARDING THE CONCLUSION OF ITS INQUIRY INTO THE ABS BENCHMARKS AND PROVIDED MARKET-WIDE FINDINGS WITH RESPECT TO COMMUNICATIONS DEEMED TO DEMONSTRATE A LACK OF PROFESSIONAL CONDUCT AND INTEGRITY. BANA SINGAPORE HAS COMPLETED THE ACTIONS REQUIRED BY MAS, INCLUDING COMPLETING THE ENHANCEMENTS TO ITS SUBMISSION PRACTICES WITH THE MAS.

Resolved: Jun 14, 2013

Allegations: ON APRIL 13, 2011, THE COMPTROLLER OF THE CURRENCY OF THE UNITED STATES OF AMERICA ("OCC") ISSUED A CEASE AND DESIST CONSENT ORDER ("ORDER") AGAINST BANK OF AMERICA, NATIONAL ASSOCIATION ("BANA"). THE ORDER IDENTIFIED CERTAIN DEFICIENCIES AND UNSAFE OR UNSOUND PRACTICES IN RESIDENTIAL MORTGAGE SERVICING AND IN BANA'S INITIATION AND HANDLING OF FORECLOSURE PROCEEDINGS. THE ORDER FINDS THAT IN CONNECTION WITH CERTAIN FORECLOSURES OF LOANS IN IT IS RESIDENTIAL SERVICING PORTFOLIO, BANA; (A) FILED OR CAUSED TO BE FILED IN COURTS EXECUTED AFFIDAVITS MAKING VARIOUS ASSERTIONS THAT WERE NOT BASED ON THE AFFIANTS' PERSONAL KNOWLEDGE OR REVIEW OF RELEVANT BOOKS AND RECORDS; (B) FILED OR CAUSED TO BE FILED IN COURTS NUMEROUS AFFIDAVITS OR OTHER MORTGAGE-RELATED DOCUMENTS THAT WERE NOT PROPERLY NOTARIZED; (C) LITIGATED FORECLOSURE PROCEEDINGS AND INITIATED NON-JUDICIAL FORECLOSURE PROCEEDINGS WITHOUT ALWAYS ENSURING THAT THE PROMISSORY NOTE OR THE MORTGAGE DOCUMENT WERE PROPERLY ENDORSED OR ASSIGNED AND, IF NECESSARY, IN THE POSSESSION OF THE APPROPRIATE PARTY AT THE APPROPRIATE TIME; (D) FAILED TO DEVOTE SUFFICIENT RESOURCES TO ENSURE PROPER ADMINISTRATION OF ITS FORECLOSURE PROCESSES; (E) FAILED TO DEVOTE TO ITS FORECLOSURE PROCESSES ADEQUATE OVERSIGHT, INTERNAL CONTROLS, POLICIES AND PROCEDURES, COMPLIANCE RISK MANAGEMENT, INTERNAL AUDIT, THIRD PARTY MANAGEMENT AND TRAINING; AND (F) FAILED TO SUFFICIENTLY OVERSEE THIRD-PARTY PROVIDERS HANDING FORECLOSURE-RELATED SERVICES.

Sanction: Cease and Desist

How it ended: Order

Summary: BANA SUBMITTED AN OFFER OF SETTLEMENT TO THE OCC. IN THE OFFER OF SETTLEMENT, BANA AGREED TO CONSENT TO THE ENTRY OF THE ORDER, WITHOUT ADMITTING OR DENYING ANY WRONGDOING. THE ORDER WAS ISSUED ON APRIL 13, 2011, AND MADE THE FINDINGS OF VIOLATIONS DESCRIBED ABOVE IN ITEM 7. THE SANCTIONS IMPOSED ARE EXPLAINED ABOVE IN ITEM 12.C. ON FEBRUARY 27, 2012, BANA ENTERED INTO AN AGREEMENT WITH THE OCC, WITHOUT ADMITTING OR DENYING ANY WRONGDOING, TO FORGO THE ASSESSMENT OF CIVIL MONEY PENALTIES AND TO RELEASE FROM CERTAIN CLAIMS IN THE ORDER SO LONG AS BANA: (A) PROVIDES BORROWERS ASSISTANCE AND CERTAIN PAYMENTS PURSUANT TO A SETTLEMENT AGREEMENT WITH THE UNITED STATES OF AMERICA, ACTING THROUGH THE UNITED STATES DEPARTMENT OF JUSTICE AND WITH THE ATTORNEYS GENERAL OF VARIOUS STATES, TO SETTLE CERTAIN POTENTIAL STATE AND FEDERAL CLAIMS RELATING TO BANA'S RESIDENTIAL MORTGAGE ORIGINATION, SERVICING AND FORECLOSURE PRACTICES; (B) PROVIDES DETAILED REPORTS AND ACCOUNTING FOR THE PAYMENTS DESCRIBED ABOVE; AND (C) SHALL MAKE AVAILABLE CERTAIN DOCUMENTS ASSOCIATED WITH THE PAYMENTS ABOVE UPON THE REQUEST OF THE OCC. ON JUNE 17, 2015, THE OCC TERMINATED THIS ORDER AGAINST BANA BECAUSE THE OCC DETERMINED THAT THE PROTECTION OF THE DEPOSITORS, OTHER CUSTOMERS, AND SHAREHOLDERS OF BANA, AS WELL AS ITS SAFE AND SOUND OPERATION, DOES NOT REQUIRE THE CONTINUED EXISTENCE OF THE ORDER ISSUED IN APRIL, 2011 AND BANA HAS SATISFIED ALL OF THE REQUIREMENTS OF AN AMENDMENT TO THE ORDER ISSUED IN FEBRUARY, 2013.

Resolved: Apr 13, 2011

Allegations: ON APRIL 7, 2014, THE CONSUMER FINANCIAL PROTECTION BUREAU ("CFPB") ISSUED A CONSENT ORDER AGAINST BANK OF AMERICA, NATIONAL ASSOCIATION AND FIA CARD SERVICES, NATIONAL ASSOCIATION. THE ORDER IDENTIFIED DEFICIENCIES IN CONNECTION WITH FULFILLMENT OF CUSTOMER PROCESSING CONCERNING THE PROVISION OF IDENTITY THEFT PROTECTION PRODUCTS AS WELL AS VENDOR AND RISK MANAGEMENT PROTOCOLS CONCERNING SO-CALLED "ADD-ON" PRODUCTS. IN ADDITION, THE CFPB IDENTIFIED WHAT IT ALLEGED WERE DECEPTIVE STATEMENTS IN CONNECTION WITH THE MARKETING AND SALE OF CREDIT CARD DEBT CANCELLATION PRODUCTS.

Sanction: Civil and Administrative Penalt(ies) /Fine(s)

How it ended: Order

Summary: WITHOUT ADMITTING OR DENYING ANY FINDINGS OF FACT OR VIOLATIONS OF LAW OR WRONGDOING, BANK OF AMERICA, NATIONAL ASSOCIATION AND FIA CARD SERVICES, NATIONAL ASSOCIATION CONSENTED TO A CIVIL MONETARY PENALTY OF $20,000,000 AND TO CEASE AND DESIST FROM ENGAGING IN FURTHER VIOLATIONS OF LAW IN CONNECTION WITH THE MARKETING AND ADMINISTRATION OF CREDIT PROTECTION PRODUCTS AND THE BILLING AND ADMINISTRATION OF IDENTITY PROTECTION PRODUCTS. FURTHER, THE CONSENT ORDER REQUIRES A RESTITUTION PLAN TO BE SUBMITTED TO THE CFPB AND, FOLLOWING APPROVAL, THE PROVISION OF RESTITUTION TO BORROWERS. IN ADDITION, THE CONSENT ORDER REQUIRES THE SUBMISSION OF ENHANCED VENDOR MANAGEMENT POLICIES; ENHANCED RISK MANAGEMENT POLICIES AND PROCEDURES; AND ENHANCED INTERNAL AUDIT REVIEWS OF ADD-ON PRODUCTS TO ASSESS UNFAIR, DECEPTIVE, OR ABUSIVE ACTS OR PRACTICES ("UDAAP") RISK.

Resolved: Apr 7, 2014

Allegations: ON APRIL 7, 2014, THE COMPTROLLER OF THE CURRENCY OF THE UNITED STATES OF AMERICA ("OCC") ISSUED A CONSENT ORDER AGAINST BANK OF AMERICA, NATIONAL ASSOCIATION AND FIA CARD SERVICES, NATIONAL ASSOCIATION. THE ORDER IDENTIFIED DEFICIENCIES IN CONNECTION WITH FULFILLMENT OF CUSTOMER PROCESSING CONCERNING THE PROVISION OF IDENTITY THEFT PROTECTION PRODUCTS AS WELL AS VENDOR AND RISK MANAGEMENT PROTOCOLS CONCERNING SO-CALLED "ADD-ON" PRODUCTS.

Sanction: Civil and Administrative Penalt(ies) /Fine(s)

How it ended: Order

Summary: WITHOUT ADMITTING OR DENYING THE FINDINGS, BANK OF AMERICA, NATIONAL ASSOCIATION AND FIA CARD SERVICES, NATIONAL ASSOCIATION CONSENTED TO A CIVIL MONETARY PENALTY OF $25,000,000. FURTHER, THE CONSENT ORDER REQUIRES A RESTITUTION PLAN TO BE SUBMITTED TO THE OCC AND, FOLLOWING APPROVAL, THE PROVISION OF RESTITUTION TO BORROWERS. IN ADDITION, THE CONSENT ORDER REQUIRES THE SUBMISSION OF ENHANCED VENDOR MANAGEMENT POLICIES; ENHANCED RISK MANAGEMENT POLICIES AND PROCEDURES; AND ENHANCED INTERNAL AUDIT REVIEWS OF ADD-ON PRODUCTS TO ASSESS UNFAIR, DECEPTIVE, OR ABUSIVE ACTS OR PRACTICES ("UDAAP") RISK.

Resolved: Apr 7, 2014

Allegations: ON NOVEMBER 11, 2014, THE OFFICE OF THE COMPTROLLER OF THE CURRENCY OF THE UNITED STATES OF AMERICA ("OCC") ISSUED A CONSENT ORDER AND A CONSENT ORDER FOR THE ASSESSMENT OF A CIVIL MONEY PENALTY AGAINST BANK OF AMERICA, N.A. ("BANK OF AMERICA") RELATED TO ITS FOREIGN EXCHANGE (FX) BUSINESS ("ORDERS") FROM 2008 THROUGH 2013. THE OCC FOUND, AND BANK OF AMERICA NEITHER ADMITTED NOR DENIED, THAT BANK OF AMERICA HAD DEFICIENCIES IN ITS INTERNAL CONTROLS AND HAD ENGAGED IN UNSAFE OR UNSOUND BANKING PRACTICES WITH RESPECT TO THE OVERSIGHT AND GOVERNANCE OF BANK OF AMERICA'S FX TRADING BUSINESS SUCH THAT THE BANK FAILED TO DETECT AND PREVENT CERTAIN CONDUCT. SPECIFICALLY, THE OCC FOUND THAT: A) BANK OF AMERICA'S COMPLIANCE RISK ASSESSMENT LACKED SUFFICIENT GRANULARITY AND FAILED TO IDENTIFY THE RISKS RELATED TO SALES, TRADING AND SUPERVISORY EMPLOYEES IN THAT BUSINESS ("EMPLOYEE"); B) BANK OF AMERICA'S TRANSACTION MONITORING AND COMMUNICATIONS SURVEILLANCE LACKED AN ADEQUATE ANALYSIS OF RISK-BEHAVIOR RELATED TO EMPLOYEE MARKET CONDUCT IN ITS WHOLESALE FOREIGN EXCHANGE BUSINESS WHERE IT IS ACTING AS PRINCIPAL ("FX TRADING"); C) BANK OF AMERICA'S COMPLIANCE TESTING PROCEDURES WERE INADEQUATE TO MEASURE ADHERENCE TO ITS STANDARDS OF EMPLOYEE CONDUCT AND FIRM POLICIES APPLICABLE TO EMPLOYEE MARKET CONDUCT IN FX TRADING; AND D) BANK OF AMERICA'S RISK ASSESSMENT AND COVERAGE OF THE FX TRADING BUSINESS NEEDED IMPROVEMENT TO IDENTIFY AND MITIGATE COMPLIANCE RISKS RELATED TO EMPLOYEE MARKET CONDUCT; E) BANK OF AMERICA'S CUSTOMER INFORMATION CONTROLS WERE INADEQUATE REGARDING THE WM/REUTERS ORDER BOOK TO PREVENT THE MISUSE OF CUSTOMER INFORMATION; F) BANK OF AMERICA'S RISK AND PROFITABILITY REPORTING WAS INADEQUATE TO IDENTIFY POTENTIAL EMPLOYEE MARKET MISCONDUCT IN FX TRADING; AND G) BANK OF AMERICA'S FX BUSINESS SUPERVISION ROUTINES WERE INADEQUATE BECAUSE THEY CREATED "GAPS" IN THE EMPLOYEE MARKET CONDUCT SUPERVISORY FRAMEWORK.

Sanction: Civil and Administrative Penalt(ies) /Fine(s)

How it ended: Settled

Summary: (CONTINUED FROM 12.C. ABOVE) G) SUBMIT AN ACCEPTABLE INTERNAL AUDIT WRITTEN PLAN FOR THE INTERNAL AUDIT PROGRAM TO ADEQUATELY ADDRESS EMPLOYEE MARKET CONDUCT IN FX TRADING; AND H) SUBMIT AN ACCEPTABLE OTHER TRADING ACTIVITIES WRITTEN PLAN TO ENSURE THAT BANK OF AMERICA PROACTIVELY USES A RISK-BASED APPROACH TO APPLY EMPLOYEE MARKET CONDUCT REMEDIAL MEASURES IN THE ORDERS TO OTHER WHOLESALE TRADING AS PRINCIPAL FOR THE BANK OF AMERICA AND BENCHMARK ACTIVITIES AS APPROPRIATE AND DEFINED IN THE BANK OF AMERICA'S WRITTEN PLAN. [ITEM 13 SUMMARY] IN SETTLEMENT OF THIS MATTER, BANK OF AMERICA CONSENTED AND AGREED TO THE ISSUANCE OF THE ORDERS, WHICH THE OCC HAS DETERMINED TO ACCEPT AND HAS ISSUED. THE ALLEGATIONS, DISPOSITIONS, FINDINGS AND SANCTIONS OF THE ORDERS ARE DESCRIBED ABOVE IN ITEMS 7 AND 12.

Resolved: Nov 11, 2014

Allegations: ON MAY 29, 2015, THE COMPTROLLER OF THE CURRENCY ("OCC") ISSUED AN ORDER TO CEASE AND DESIST AND ORDER OF ASSESSMENT OF A CIVIL MONEY PENALTY (TOGETHER, THE "ORDERS") AGAINST BANK OF AMERICA, N.A. ("BANA") RELATING TO THE SERVICEMEMBERS CIVIL RELIEF ACT ("SCRA") AND BANA'S SWORN DOCUMENT AND COLLECTIONS LITIGATION PRACTICES. IN THE ORDERS, THE OCC IDENTIFIED (I) UNSAFE OR UNSOUND PRACTICES IN CONNECTION WITH BANA'S EFFORTS TO COMPLY WITH THE SCRA, (II) SCRA VIOLATIONS, AND (III) UNSAFE OR UNSOUND PRACTICES IN CONNECTION WITH BANA'S SWORN DOCUMENT AND COLLECTIONS LITIGATION PRACTICES. REGARDING THE SCRA, THE ORDERS STATED BANA FAILED TO HAVE EFFECTIVE POLICIES AND PROCEDURES TO ENSURE COMPLIANCE WITH SCRA; FAILED TO DEVOTE SUFFICIENT FINANCIAL, STAFFING, AND MANAGERIAL RESOURCES TO ENSURE PROPER ADMINISTRATION OF ITS SCRA COMPLIANCE PROCESSES; FAILED TO DEVOTE TO ITS SCRA COMPLIANCE PROCESSES ADEQUATE INTERNAL CONTROLS, COMPLIANCE RISK MANAGEMENT, INTERNAL AUDIT, THIRD PARTY MANAGEMENT, AND TRAINING; AND ENGAGED IN VIOLATIONS OF THE SCRA. REGARDING THE SWORN DOCUMENT AND COLLECTIONS LITIGATION PROCESS, THE ORDERS STATED THAT BANA FILED OR CAUSED TO BE FILED IN COURTS AFFIDAVITS EXECUTED BY ITS EMPLOYEES OR EMPLOYEES OF THIRD PARTY SERVICE PROVIDERS MAKING ASSERTIONS THAT, IN MANY CASES, WERE NOT BASED ON PERSONAL KNOWLEDGE OR REVIEW OF RELEVANT BOOKS AND RECORDS; FILED OR CAUSED TO BE FILED IN COURT AFFIDAVITS WHEN BANA DID NOT FOLLOW PROPER NOTARY PROCEDURES; FAILED TO DEVOTE SUFFICIENT FINANCIAL, STAFFING, AND MANAGERIAL RESOURCES TO ENSURE PROPER ADMINISTRATION OF ITS SWORN DOCUMENT AND COLLECTIONS LITIGATION PROCESSES; AND FAILED TO SUFFICIENTLY OVERSEE OUTSIDE COUNSEL AND OTHER THIRD-PARTY PROVIDERS HANDLING SWORN DOCUMENT AND COLLECTIONS LITIGATION SERVICES.

Sanction: Civil and Administrative Penalt(ies) /Fine(s)

How it ended: Settled

Summary: IN SETTLEMENT OF THIS MATTER, BANA CONSENTED AND AGREED TO THE ISSUANCE OF THE ORDERS, WHICH THE OCC HAS DETERMINED TO ACCEPT AND HAS ISSUED. BANA NEITHER ADMITS NOR DENIES THE FINDINGS IN THE ORDERS. THE ALLEGATIONS, DISPOSITIONS, FINDINGS AND SANCTIONS OF THE ORDERS ARE DESCRIBED ABOVE IN ITEMS 7 AND 12.

Resolved: May 29, 2015

Allegations: THE COMPTROLLER OF THE CURRENCY (THE "COMPTROLLER") EXAMINED CERTAIN ACTIVITIES RELATED TO THE PARTICIPATION OF CERTAIN BANK OF AMERICA, NATIONAL ASSOCIATION (THE "BANK") EMPLOYEES IN THE SALE OF CERTAIN DERIVATIVE FINANCIAL PRODUCTS TO MUNICIPALITIES AND NON-PROFIT ORGANIZATIONS, AND REVIEWED INFORMATION INDICATING THAT CERTAIN BANK EMPLOYEES ENGAGED IN ILLEGAL BIDDING ACTIVITY RELATED TO THE SALE OF THOSE DERIVATIVE FINANCIAL PRODUCTS VARIOUSLY BETWEEN 1998 AND JANUARY 2004. FOLLOWING THE REVIEW, THE BANK AND THE COMPTROLLER ENTERED INTO A FORMAL WRITTEN AGREEMENT TO ENSURE THAT THE BANK PROACTIVELY AND APPROPRIATELY MANAGES ITS COMPLIANCE RISK RELATED TO VARIOUS COMPETITIVELY BID TRANSACTIONS, INCLUDING THOSE RELATED TO DERIVATIVE FINANCIAL PRODUCTS TO MUNICIPALITIES AND NON-PROFIT ORGANIZATIONS.

Sanction: Restitution

How it ended: Settled

Summary: THE BANK HAS ENTERED INTO A WRITTEN AGREEMENT ON DECEMBER 7, 2010, WITH THE COMPTROLLER OF THE CURRENCY. UNDER THE TERMS OF THE WRITTEN AGREEMENT, THE BANK AGREED TO INSTITUTE AND/OR CONTINUE CERTAIN POLICIES AND PROCEDURES, INCLUDING COMPLIANCE, TRAINING AND AUDIT PROGRAMS, RELATING TO COMPETITIVELY BID TRANSACTIONS FOR THE SALE OF DERIVATIVE FINANCIAL PRODUCTS TO MUNICIPALITIES AND NON-PROFIT ORGANIZATIONS THAT ARE INTENDED TO INVEST OR RE-INVEST THE PROCEEDS OF BONDS ISSUED BY THESE ORGANIZATIONS OR TO MANAGE OR TRANSFER THE INTEREST RATES OF BONDS ISSUED BY THE ORGANIZATIONS. IN ADDITION, THE BANK AGREED TO DO A FORMAL ASSESSMENT OF ALL BUSINESS LINES THAT ENGAGE IN CERTAIN TYPES OF COMPETITIVELY BID TRANSACTIONS, TO COMPLETE A FORMAL EVALUATION OF THE OPERATIONAL POLICIES AND PROCEDURES APPLICABLE TO SUCH BUSINESSES TO ENSURE THAT ADEQUATE POLICIES AND PROCEDURES EXIST TO ENSURE COMPLIANCE WITH SAFE AND SOUND BANKING PRACTICES, LAW, AND REGULATIONS RELATED TO THE COMPETITIVELY BID TRANSACTIONS, AND TO DEVELOP AN INTERNAL TRAINING PROGRAM TO ENSURE COMPLIANCE WITH ALL LAWS AND REGULATIONS RELATED TO COMPETITIVELY BID TRANSACTIONS. UPON APPROVAL BY THE COMPTROLLER, THE BANK MUST IMMEDIATELY BEGIN TO IMPLEMENT THE POLICIES, PROCEDURES AND PROGRAMS CALLED FOR BY THE AGREEMENT. FINALLY, THE BANK AGREED TO PAY UNJUST ENRICHMENT IN THE AMOUNT OF $9,217,218 TO CERTAIN COUNTERPARTIES INDENTIFIED BY THE COMPTROLLER.

Resolved: Dec 7, 2010

Allegations: ON JUNE 29, 2015, THE COMPTROLLER OF THE CURRENCY ("OCC") ISSUED A CONSENT ORDER AND A CONSENT ORDER FOR A CIVIL MONEY PENALTY (TOGETHER, THE "ORDERS") AGAINST BANK OF AMERICA, N.A. ("BANA") RELATING TO THE BANA'S PRACTICES THAT RESULTED IN VIOLATIONS OF THE NATIONAL FLOOD INSURANCE ACT OF 1968, AS AMENDED, AND THE FLOOD DISASTER PROTECTION ACT OF 1973, AS AMENDED (COLLECTIVELY, "FDPA"), 42 U.S.C. § 4001, ET SEQ., AND THEIR IMPLEMENTING REGULATIONS. SPECIFICALLY, THE OCC FOUND THAT, SINCE AT LEAST 2011, BANA VIOLATED 42 U.S.C. § 4012A(E) (PLACEMENT OF FLOOD INSURANCE BY LENDER) AND 12 C.F.R. §§ 22.3 (REQUIREMENT TO PURCHASE FLOOD INSURANCE WHERE AVAILABLE) AND 22.9 (NOTICE OF SPECIAL FLOOD HAZARDS AND AVAILABILITY OF FEDERAL DISASTER RELIEF ASSISTANCE) IN MAKING, INCREASING, EXTENDING, RENEWING, AND/OR SERVICING "DESIGNATED LOANS" (LOANS SECURED BY BUILDINGS OR MOBILE HOMES LOCATED IN SPECIAL FLOOD HAZARD AREAS IN WHICH FLOOD INSURANCE IS AVAILABLE UNDER THE NATIONAL FLOOD INSURANCE ACT OF 1968). THE OCC FOUND THAT THESE VIOLATIONS RESULTED FROM DEFICIENT POLICIES, PROCEDURES, AND PROCESSES AND AN INEFFECTIVE FDPA COMPLIANCE PROGRAM.

Sanction: Civil and Administrative Penalt(ies) /Fine(s)

How it ended: Settled

Summary: IN SETTLEMENT OF THIS MATTER, BANA CONSENTED AND AGREED TO THE ISSUANCE OF THE ORDERS, WHICH THE OCC HAS DETERMINED TO ACCEPT AND HAS ISSUED. BANA NEITHER ADMITS NOR DENIES THE FINDINGS IN THE ORDERS. THE ALLEGATIONS, DISPOSITIONS, FINDINGS AND SANCTIONS OF THE ORDERS ARE DESCRIBED ABOVE IN ITEMS 7 AND 12.

Resolved: Jun 29, 2015

Allegations: THE BANGKO SENTRAL NG PILIPINAS (BS") APPROVED THE IMPOSITION OF A MONETARY PENALTY ON THE FIRM FOR THE FOLLOWING VIOLATIONS OF THE MANUAL OF REGULATIONS ON FOREIGN EXCHANGE TRANSACTIONS: DEFICIENCY IN E/FOREIGN CURRENCY DEPOSIT UNIT (FCDU) ASSET COVER REQUIREMENT, FALSE/ERRONEOUS CERTIFICATION OF COMPLIANCE WITH E/FCDU COVER AND BREACH ON THE CAP ON ALLOWABLE LENDING OF FCDU FUNDS TO REGULAR BANKING UNITS.

Sanction: Civil and Administrative Penalt(ies) /Fine(s)

How it ended: Other

Summary: THE MONETARY BOARD IMPOSED A PENALTY IN THE AMOUNT OF PHP67,303,484.29 (APPROX. USD1,306,930) ON THE FIRM. PURSUANT TO THE BSP'S RULES, THE FIRM'S DEMAND DEPOSIT ACCOUNT WITH THE BSP SHALL BE AUTOMATICALLY DEBITED THE ABOVE REFERENCED AMOUNT UPON THE LAPSE OF FIFTEEN CALENDAR DAYS FROM RECEIPT OF THE FINAL BILLING LETTER. THEREFORE, THE AMOUNT MAY BE DEBITED NO EARLIER THAN OCTOBER 12, 2017.

Resolved: Oct 12, 2017

Allegations: THE OFFICE OF ANTIBOYCOTT COMPLIANCE, BUREAU OF INDUSTRY AND SECURITY, U.S. DEPARTMENT OF COMMERCE ("BIS") ALLEGED, AS SET FORTH IN A PROPOSED CHARGING LETTER, THAT BANK OF AMERICA N.A. ("BOFA"), ON THIRTEEN OCCASIONS, VIOLATED THE EXPORT ADMINISTRATION REGULATIONS (CURRENTLY CODIFIED AT 15 C.F.R. 730-774 (2017) ("REGULATIONS"), WHICH ARE ISSUED UNDER THE AUTHORITY OF THE EXPORT ADMINISTRATION ACT OF 1979, AS AMENDED. THE ALLEGATIONS WERE RESOLVED PURSUANT TO A SETTLEMENT AGREEMENT BETWEEN BIS AND BOFA. UNDER THE SETTLEMENT AGREEMENT, BIS ENTERED AN ORDER IMPOSING A CIVIL PENALTY, BUT DID NOT INITIATE ANY ADMINISTRATIVE OR JUDICIAL PROCEEDING OR MAKE A REFERRAL TO THE DEPARTMENT OF JUSTICE FOR CRIMINAL PROCEEDINGS AGAINST BOFA WITH RESPECT TO SECTION 8 OF THE EXPORT ADMINISTRATION ACT OR PART 760 OF THE REGULATIONS. NO FINDINGS OF VIOLATIONS WERE MADE.

Sanction: Civil and Administrative Penalt(ies) /Fine(s)

How it ended: Order

Summary: BOFA ENTERED INTO A SETTLEMENT AGREEMENT WITH BIS. THE SETTLEMENT AGREEMENT RESOLVED ALLEGATIONS BY THE BIS THAT BOFA, ON THIRTEEN OCCASIONS, VIOLATED THE EXPORT ADMINISTRATION REGULATIONS (CURRENTLY CODIFIED AT 15 C.F.R. 730-774 (2017) ("REGULATIONS"), WHICH ARE ISSUED UNDER THE AUTHORITY OF THE EXPORT ADMINISTRATION ACT OF 1979, AS AMENDED. UNDER THE SETTLEMENT AGREEMENT, BIS ENTERED AN ORDER IMPOSING A CIVIL PENALTY, BUT DID NOT INITIATE ANY ADMINISTRATIVE OR JUDICIAL PROCEEDING OR MAKE A REFERRAL TO THE DEPARTMENT OF JUSTICE FOR CRIMINAL PROCEEDINGS AGAINST BOFA WITH RESPECT TO SECTION 8 OF THE EXPORT ADMINISTRATION ACT OR PART 760 OF THE REGULATIONS. NO FINDINGS OF VIOLATIONS WERE MADE.

Resolved: Nov 13, 2017

Allegations: THE SECURITIES AND EXCHANGE COMMISSION OF THE PHILIPPINES ("PHILIPPINES SEC") ALLEGED THAT THE FIRM DID NOT MEET CERTAIN REPORTING REQUIREMENTS IN THE PHILIPPINES REGARDING ITS REGIONAL AREA HEADQUARTERS ("RHQ"), WHICH HAD NOT ENGAGED IN ANY OPERATIONS IN THE PHILIPPINES FOR DECADES AND DID NOT PLAN TO ENGAGE IN ANY OPERATIONS IN THE PHILIPPINES IN THE FUTURE.

Sanction: Suspension

How it ended: Order

Summary: AN RHQ IS A SPECIAL TYPE OF "BRANCH" WHOSE AUTHORIZED ACTIVITIES ARE LIMITED TO ACTING AS AN ADMINISTRATIVE BRANCH OF A MULTINATIONAL COMPANY ENGAGED IN INTERNATIONAL TRADE AND PRINCIPALLY SERVES AS A SUPERVISION, COMMUNICATIONS AND COORDINATION CENTER FOR ITS SUBSIDIARIES, BRANCHES OR AFFILIATES IN THE ASIA-PACIFIC REGION AND OTHER FOREIGN MARKETS. THE FIRM'S RHQ HAD BEEN DORMANT FOR DECADES AND DID NOT ENGAGE IN ANY SECURITIES ACTIVITIES. AS A MEANS TO DEREGISTER THE RHQ, THE FIRM REQUESTED THAT THE PHILIPPINES SEC SUSPEND ITS LICENSE AND THE PHILIPPINES SEC GRANTED THE FIRM'S REQUEST.

Resolved: Nov 28, 2017

Allegations: THE ATTORNEY GENERAL OF THE STATE OF NEW YORK INVESTOR PROTECTION BUREAU ALLEGED THAT BANK OF AMERICA CORPORATION (BAC) AND THE FIRM (1) CONCEALED FROM ITS INSTITUTIONAL CLIENTS THAT ORDERS WERE ROUTED TO AND EXECUTED BY "ELECTRONIC LIQUIDITY PROVIDERS," (2) MISSTATED THE COMPOSITION OF ORDERS AND TRADES IN ITS DARK POOL, AND (3) DID NOT ACCURATELY DESCRIBE ITS USE OF A PROPRIETARY "VENUE RANKING" ANALYSIS, IN VIOLATION OF THE MARTIN ACT AND EXECUTIVE LAW § 63(12).

Sanction: Civil and Administrative Penalt(ies) /Fine(s)

How it ended: Settled

Summary: IN CONNECTION WITH THE AGREEMENT, BOFAML AGREED (1) NOT TO ENGAGE, OR ATTEMPT TO ENGAGE, IN CONDUCT IN VIOLATION OF ANY APPLICABLE LAWS, INCLUDING BUT NOT LIMITED TO THE MARTIN ACT AND EXECUTIVE LAW § 63(12); (2) TO PAY A PENALTY IN THE AMOUNT OF $42,000,000; AND (3) PROVIDE THE NYAG A SUMMARY OF THE REVIEW OF ITS ELECTRONIC TRADING POLICIES AND PROCEDURES.

Resolved: Mar 22, 2018

Allegations: THE BAFIN ALLEGED THAT NECESSARY AND REASONABLE SUPERVISORY AND ORGANIZATIONAL MEASURES WHICH COULD HAVE ENSURED THE CORRECT AND COMPLETE SUBMISSION OF VOTING RIGHTS NOTIFICATIONS WITHIN THE TIME STIPULATED WERE NOT TAKEN ON TIME OR TO THE ADEQUATE EXTENT BY THE COMPANY CONCERNED, WHICH LED TO VIOLATIONS OF VOTING RIGHTS NOTIFICATION REQUIREMENTS.

Sanction: Civil and Administrative Penalt(ies) /Fine(s)

How it ended: Other

Summary: THE BAFIN IMPOSED A FINE ON THE FIRM IN THE AMOUNT OF EUR 1,340,000/USD 1,635,872 AND A FEE FOR COSTS OF THE PROCEEDING IN THE AMOUNT OF EUR 7,500/USD 9,156. THE EFFECTIVE DATE OF THE NOTICE IS TWO WEEKS AFTER THE DELIVERY OF THE NOTICE - DURING WHICH TIME THE FIRM CAN APPEAL THE NOTICE. THE FIRM DID NOT APPEAL THE NOTICE AND THE NOTICE BECAME EFFECTIVE ON MAY 14, 2018.

Resolved: May 14, 2018

Allegations: THE U.S. COMMODITY FUTURES TRADING COMMISSION (CFTC) ALLEGED THAT, ON OCCASION FROM JANUARY 2007 THROUGH DECEMBER 2012, THE FIRM, BY AND THROUGH CERTAIN OF ITS TRADERS, ATTEMPTED TO MANIPULATE THE U.S. DOLLAR INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION FIX (USD ISDAFIX), A BENCHMARK RELATED TO INTEREST-RATE PRODUCTS, TO BENEFIT THE FIRM'S DERIVATIVES POSITIONS IN VIOLATION OF SECTION 9(A)(2) OF THE COMMODITY EXCHANGE ACT (CEA); SECTION 6(C) AND 6(D) OF THE CEA, FOR CONDUCT OCCURRING PRIOR TO AUGUST 15, 2011; AND SECTION 6(C)(1), 6(C)(1)(A), 6(C)(3) AND 6(D) OF THE CEA, AND REGULATIONS 180.1(A) AND 180.2, FOR CONDUCT OCCURRING ON OR AFTER AUGUST 15, 2011.

Sanction: Civil and Administrative Penalt(ies) /Fine(s)

How it ended: Order

Summary: WITHOUT ADMITTING OR DENYING THE FINDINGS OR CONCLUSIONS IN THE ORDER, THE FIRM CONSENTED TO THE IMPOSITION OF THE FOLLOWING SANCTIONS: (1) TO CEASE AND DESIST FROM VIOLATING SECTIONS 6(C)(1), 6(C)(1)(A), 6(C)(3), 6(D), AND 9(A)(2) OF THE CEA AND REGULATIONS 180.1(A) AND 180.2, (2) TO PAY A CIVIL MONETARY PENALTY IN THE AMOUNT OF $30,000,000, WHICH THE FIRM PAID ON SEPTEMBER 24, 2018, AND (3) CONTINUE TO UNDERTAKE CERTAIN REMEDIATION EFFORTS, INCLUDING PROVIDING A REPORT TO THE CFTC WITHIN 120 DAYS OF THE ORDER ADDRESSING REMEDIATION EFFORTS BOTH PRIOR TO AND SINCE ENTRY OF THE ORDER, AND PROVIDING AN ADDITIONAL REPORT TO THE CFTC, NO LATER THAN 365 DAYS FROM ENTRY OF THE ORDER, EXPLAINING HOW THE FIRM HAS COMPLIED WITH THE UNDERTAKINGS SET FORTH IN THE ORDER.

Resolved: Sep 19, 2018

Allegations: THE RESERVE BANK OF INDIA ("RBI") ALLEGED THAT THE FIRM'S RECONCILIATION OF LOGS GENERATED FROM SWIFT WAS NOT SUFFICIENT AND VIOLATED THE DIRECTION OF THE RBI.

Sanction: Civil and Administrative Penalt(ies) /Fine(s)

How it ended: Order

Summary: THE RBI ORDERED THE FIRM TO PAY A MONETARY PENALTY IN THE AMOUNT OF INR10,000,000, WHICH IS APPROXIMATELY USD $144,952.00.

Resolved: Feb 25, 2019

Allegations: THE BANGKO SENTRAL NG PILIPINAS (BSP) APPROVED THE IMPOSITION OF A MONETARY PENALTY ON THE FIRM FOR NON-COMPLIANCE WITH THE 100.0 PERCENT EXPANDED/FOREIGN CURRENCY DEPOSIT UNIT (E/FCDU) ASSET COVER REQUIREMENT.

Sanction: Civil and Administrative Penalt(ies) /Fine(s)

How it ended: Other

Summary: THE MONETARY BOARD IMPOSED A PENALTY IN THE AMOUNT OF PHP1,011,442 (USD19,473.80) ON THE FIRM. PURSUANT TO THE BSP'S RULES, THE FIRM'S DEMAND DEPOSIT ACCOUNT WITH THE BSP SHALL BE AUTOMATICALLY DEBITED THE ABOVE REFERENCED AMOUNT UPON THE LAPSE OF FIFTEEN CALENDAR DAYS FROM RECEIPT OF THE FINAL BILLING LETTER. THEREFORE, THE AMOUNT MAY BE DEBITED NO EARLIER THAN APRIL 26, 2019.

Resolved: Apr 26, 2019

Allegations: THE BUNDESANSTALT FUR FINANZDIENSTLEISTUNGSAUFSICHT (BAFIN) APPROVED THE IMPOSITION OF AN ADMINISTRATIVE FINE ON BANK OF AMERICA CORPORATION FOR FAILURE TO TAKE THE SUPERVISORY AND ORGANISATIONAL MEASURES THAT WOULD HAVE BEEN REQUIRED IN ORDER TO ENSURE THE CORRECT AND COMPLETE SUBMISSION OF VOTING RIGHTS NOTIFICATIONS WITHIN THE PRESCRIBED PERIOD, IN BREACH OF SECTION 130(1) OF THE GERMAN ACT ON BREACHES OF ADMINISTRATIVE REGULATIONS IN CONJUNCTION WITH SECTIONS 33 (1) SENTENCE 1, SECTION 38(1) SENTENCE 1 AND 39 (1) OF THE GERMAN SECURITIES TRADING ACT.

Sanction: Civil and Administrative Penalt(ies) /Fine(s)

How it ended: Other

Summary: BAFIN IMPOSED A PENALTY IN THE AMOUNT OF EUR5,100,000 (APPROXIMATELY USD5,071,950) ON BAC AND COSTS OF THE PROCEEDING IN THE AMOUNT OF EUR7,500 (APPROXIMATELY USD 7,479). THE PAYMENTS WERE MADE IN ACCORDANCE WITH THE TERMS OF THE ORDER.

Resolved: Aug 22, 2022

Allegations: THE SECURITIES AND EXCHANGE COMMISSION ("SEC") ALLEGED THAT BANK OF AMERICA CORPORATION (THE "CORPORATION") VIOLATED SECTION 14(A) OF THE SECURITIES EXCHANGE ACT OF 1934 (THE "EXCHANGE ACT") AND RULE 14A-9 THEREUNDER BY FAILING TO DISCLOSE IN THE CORPORATION'S JOINT PROXY STATEMENT FILED ON NOVEMBER 3, 2008 THE INCENTIVE COMPENSATION THAT MERRILL LYNCH & CO., INC. COULD, IN ITS DISCRETION, AWARD TO ITS EMPLOYEES PRIOR TO COMPLETION OF ITS MERGER WITH THE CORPORATION.

Sanction: Civil Penalty(ies)/Fine(s)

How it ended: Consent

Resolved: Feb 24, 2010

Allegations: THE SECURITIES AND EXCHANGE COMMISSION ("SEC") ALLEGED THAT BANK OF AMERICA CORPORATION (THE "CORPORATION") VIOLATED THE FEDERAL PROXY RULES BY FAILING TO DISCLOSE INFORMATION CONCERNING MERRILL LYNCH & CO., INC.'S KNOWN AND ESTIMATED LOSSES IN THE FOURTH QUARTER OF 2008 PRIOR TO THE SHAREHOLDER VOTE ON DECEMBER 5, 2008 TO APPROVE THE MERGER BETWEEN THE TWO COMPANIES.

Sanction: Civil Penalty(ies)/Fine(s)

How it ended: Consent

Resolved: Feb 24, 2010

Allegations: THE ATTORNEY GENERAL OF THE STATE OF NEW YORK ALLEGES THAT BANK OF AMERICA CORPORATION ("BAC"), ITS FORMER CEO KENNETH D. LEWIS AND ITS FORMER CFO JOSEPH L. PRICE ENGAGED IN ACTS AND PRACTICES IN CONNECTION WITH THE MERGER (THE "MERGER") BETWEEN BAC AND MERRILL LYNCH & CO. INC. ("MERRILL LYNCH") THAT VIOLATED CERTAIN PROVISIONS OF THE NEW YORK GENERAL BUSINESS LAW (THE "MARTIN ACT") AND THE NEW YORK EXECUTIVE LAW.

Sanction: Civil Penalty(ies)/Fine(s)

How it ended: Settled

Resolved: Mar 25, 2014

Allegations: ON MARCH 12, 2012, THE DEPARTMENT OF JUSTICE AND THE ATTORNEYS GENERAL OF 49 STATES AND THE DISTRICT OF COLUMBIA FILED A COMPLAINT ("COMPLAINT") AND CONSENT JUDGMENT AGAINST BANK OF AMERICA CORPORATION, BANK OF AMERICA, N.A., BAC HOME LOANS SERVICING, LP F/K/A COUNTRYWIDE HOME LOANS SERVICING, LP, COUNTRYWIDE HOME LOANS, INC., COUNTRYWIDE FINANCIAL CORPORATION, COUNTRYWIDE MORTGAGE VENTURES, LLC, AND/OR COUNTRYWIDE BANK, FSB (TOGETHER, "BANK OF AMERICA") AND OTHER MAJOR MORTGAGE SERVICERS TO SETTLE A NUMBER OF RELATED INVESTIGATIONS INTO RESIDENTIAL LOAN SERVICING AND ORIGINATION PRACTICES (THE "SETTLEMENT"). THE COMPLAINT ALLEGED THE DEFENDANT'S MISCONDUCT RELATED TO ITS ORIGINATION AND SERVICING OF SINGLE FAMILY RESIDENTIAL MORTGAGES CAUSED THE DEFENDANTS TO HAVE VIOLATED, AMONG OTHER LAWS, THE UNFAIR AND DECEPTIVE ACTS AND PRACTICES LAWS OF THE PLAINTIFF STATES, THE FALSE CLAIMS ACT, THE FINANCIAL INSTITUTIONS REFORM, RECOVERY, AND ENFORCEMENT ACT OF 1989, THE SERVICEMEMBERS CIVIL RELIEF ACT, AND THE BANKRUPTCY CODE AND FEDERAL RULES OF BANKRUPTCY PROCEDURE.

Sanction: Civil Penalty(ies)/Fine(s)

How it ended: Settled

Resolved: Apr 5, 2012

Allegations: ON AUGUST 6, 2013, THE DEPARTMENT OF JUSTICE FILED A CIVIL ACTION AGAINST MERRILL LYNCH, PIERCE, FENNER & SMITH, INC. F/K/A BANC OF AMERICA SECURITIES LLC (THE "FIRM") AND OTHER ENTITIES (COLLECTIVELY THE "ENTITIES"). THE DEPARTMENT OF JUSTICE ALLEGES THAT THE ENTITIES VIOLATED THE FINANCIAL INSTITUTIONS REFORM, RECOVERY AND ENFORCEMENT ACT OF 1989, 12 U.S.C. § 1833A, THROUGH CIVIL VIOLATIONS OF 18 U.S.C. §§ 1001 AND 1014. THE COMPLAINT CLAIMS THAT THE ENTITIES MADE FALSE STATEMENTS TO AND OMITTED MATERIAL INFORMATION FROM THE GOVERNMENT AND FEDERALLY INSURED FINANCIAL INSTITUTIONS. SPECIFICALLY, THE COMPLAINT ALLEGES THAT THE ENTITIES FAILED TO DISCLOSE THE DISPROPORTIONATE CONCENTRATION OF WHOLESALE CHANNEL LOANS ORIGINATED BY THIRD PARTIES UNDERLYING THE RESIDENTIAL MORTGAGE BACKED SECURITIES. THE COMPLAINT ALLEGES THAT THE ENTITIES KNEW THE WHOLESALE CHANNEL LOANS WERE RISKIER AS COMPARED TO SIMILAR MORTGAGES ORIGINATED BY THE ENTITIES DIRECTLY. THE COMPLAINT ALSO ALLEGES THAT THE ENTITIES FAILED TO DISCLOSE THE PERCENTAGE OF PAPERSAVER LOANS MADE TO SELF-EMPLOYED BORROWERS. THE COMPLAINT ALLEGES THAT THE ENTITIES KNEW PAPERSAVER LOANS WERE RISKIER THAN MORTGAGES GIVEN TO SALARIED BORROWERS. THE COMPLAINT FURTHER ALLEGES THAT, EVEN THOUGH THE ENTITIES WERE AWARE OF THE RISKS ASSOCIATED WITH THE CHARACTERISTICS OF THE POOL, THE ENTITIES FAILED TO CONDUCT THIRD- PARTY DUE DILIGENCE ON THE MORTGAGES IN THE POOL AND VIOLATED THE FIRM'S DUE DILIGENCE POLICIES. THE COMPLAINT SEEKS A CIVIL MONETARY JUDGMENT IN AN UNSTATED AMOUNT PURSUANT TO 12 U.S.C. § 1833A(B), PREJUDGMENT INTEREST, AND ATTORNEYS' FEES.

Sanction: Civil Penalty(ies)/Fine(s)

How it ended: Dismissed

Resolved: Aug 29, 2014

Allegations: ON MARCH 12, 2012, THE DEPARTMENT OF JUSTICE AND THE ATTORNEYS GENERAL OF 49 STATES AND THE DISTRICT OF COLUMBIA FILED A COMPLAINT ("COMPLAINT") AND CONSENT JUDGMENT AGAINST BANK OF AMERICA CORPORATION, BANK OF AMERICA, N.A., BAC HOME LOANS SERVICING, LP F/K/A COUNTRYWIDE HOME LOANS SERVICING, LP, COUNTRYWIDE HOME LOANS, INC., COUNTRYWIDE FINANCIAL CORPORATION, COUNTRYWIDE MORTGAGE VENTURES, LLC, AND/OR COUNTRYWIDE BANK, FSB (TOGETHER, "BANK OF AMERICA") AND OTHER MAJOR MORTGAGE SERVICERS TO SETTLE A NUMBER OF RELATED INVESTIGATIONS INTO RESIDENTIAL LOAN SERVICING AND ORIGINATION PRACTICES (THE "SETTLEMENT"). THE COMPLAINT ALLEGED THE DEFENDANT'S MISCONDUCT RELATED TO ITS ORIGINATION AND SERVICING OF SINGLE FAMILY RESIDENTIAL MORTGAGES CAUSED THE DEFENDANTS TO HAVE VIOLATED, AMONG OTHER LAWS, THE UNFAIR AND DECEPTIVE ACTS AND PRACTICES LAWS OF THE PLAINTIFF STATES, THE FALSE CLAIMS ACT, THE FINANCIAL INSTITUTIONS REFORM, RECOVERY, AND ENFORCEMENT ACT OF 1989, THE SERVICEMEMBERS CIVIL RELIEF ACT, AND THE BANKRUPTCY CODE AND FEDERAL RULES OF BANKRUPTCY PROCEDURE.

Sanction: Civil Penalty(ies)/Fine(s)

How it ended: Settled

Resolved: Apr 5, 2012

Allegations: SEC LITIGATION RELEASE 22772, AUGUST 7, 2013: ON AUGUST 6, 2013, THE SECURITIES AND EXCHANGE COMMISSION ("COMMISSION") FILED A CIVIL INJUNCTIVE ACTION AGAINST MERRILL LYNCH, PIERCE, FENNER & SMITH, INC. F/K/A BANC OF AMERICA SECURITIES LLC ("FIRM") AND OTHER ENTITIES (COLLECTIVELY THE "ENTITIES"). THE COMMISSION ALLEGES THAT THE ENTITIES MADE MATERIAL MISREPRESENTATIONS AND OMISSIONS IN CONNECTION WITH THE SALE OF RESIDENTIAL MORTGAGE-BACKED SECURITIES. SPECIFICALLY, THE COMPLAINT ALLEGES THAT THE ENTITIES FAILED TO DISCLOSE THE DISPROPORTIONATE CONCENTRATION OF WHOLESALE LOANS (72% BY UNPAID PRINCIPAL BALANCE) UNDERLYING THE RESIDENTIAL MORTGAGE-BACKED SECURITIES AS COMPARED TO PRIOR RESIDENTIAL MORTGAGE-BACKED SECURITIES OFFERINGS. THE COMPLAINT ALSO ALLEGES THAT THE ENTITIES FAILED TO DISCLOSE KNOWN RISKS ASSOCIATED WITH THE HIGH CONCENTRATION OF WHOLESALE LOANS IN THE RESIDENTIAL MORTGAGE-BACKED SECURITIES INCLUDING HIGHER LIKELIHOOD THAT THE LOANS WOULD BE SUBJECT TO MATERIAL UNDERWRITING ERRORS, BECOME SEVERELY DELINQUENT, FAIL EARLY IN THE LIFE OF THE LOAN, OR PREPAY. THE COMPLAINT FURTHER ALLEGES THAT THE ENTITIES VIOLATED REGULATION S-K AND SUBPART REGULATION AB OF THE SECURITIES ACT OF 1933 (THE "SECURITIES ACT") BY FAILING TO DISCLOSE THE MATERIAL CHARACTERISTICS OF THE POOL OF LOANS UNDERLYING THE RESIDENTIAL MORTGAGE-BACKED SECURITIES. THE COMPLAINT ALSO ALLEGES THAT THE ENTITIES MADE MATERIAL MISREPRESENTATIONS AND OMISSIONS IN ITS PUBLIC FILINGS AND IN THE LOAN TAPES IT PROVIDED TO INVESTORS AND RATING AGENCIES THAT THE LOANS IN THE RESIDENTIAL MORTGAGE-BACKED SECURITIES COMPLIED WITH UNDERWRITING STANDARDS WHEN A MATERIAL AMOUNT DID NOT. FINALLY, THE COMPLAINT ALLEGES THAT THE FIRM VIOLATED SECTION 5(B)(1) OF THE SECURITIES ACT BY FAILING TO FILE WITH THE COMMISSION CERTAIN LOAN TAPES THAT IT PROVIDED ONLY TO SELECT INVESTORS. THE COMMISSION'S COMPLAINT, FILED IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF NORTH CAROLINA, CHARGES THE FIRM WITH VIOLATING THE ANTIFRAUD PROVISIONS OF THE FEDERAL SECURITIES LAWS. THE COMPLAINT ALLEGES THAT THAT THE FIRM VIOLATED SECTIONS 17(A)(2) AND 17(A)(3) OF THE SECURITIES ACT. THE COMPLAINT ALSO ALLEGES THAT THE FIRM VIOLATED SECTION 5(B)(1) OF THE SECURITIES ACT. THE COMPLAINT SEEKS AGAINST THE FIRM A PERMANENT INJUNCTION, DISGORGEMENT WITH PREJUDGMENT INTEREST AND CIVIL MONETARY PENALTIES PURSUANT SECTION 20(D) OF THE SECURITIES ACT.

Sanction: Injunction

How it ended: Judgment Rendered

Resolved: Nov 25, 2014

Allegations: AFTER AN INDIVIDUAL COMMENCED A QUI TAM LAWSUIT, THE U.S. ATTORNEY FILED A COMPLAINT-IN-INTERVENTION IN 2012 IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK ("COURT") AGAINST COUNTRYWIDE HOME LOANS, INC., COUNTRYWIDE BANK, FSB, BANK OF AMERICA, N.A. AND CERTAIN AFFILIATES ("DEFENDANTS") ALLEGING THAT THE DEFENDANTS ENGAGED IN AN INTENTIONAL SCHEME TO MISREPRESENT THE QUALITY OF THE MORTGAGE LOANS THAT IT PROCESSED THROUGH A PARTICULAR LOAN ORIGINATION PROGRAM AND SOLD TO FANNIE MAE AND FREDDIE MAC DURING AUGUST 2007 TO MAY 2008. THE COMPLAINT SOUGHT TO RECOVER TREBLE DAMAGES AND PENALTIES UNDER THE FALSE CLAIMS ACT, 31 U.S.C. § 3729 ET. SEQ. ("FCA") AND CIVIL PENALTIES UNDER THE FINANCIAL INSTITUTIONS REFORM, RECOVERY, AND ENFORCEMENT ACT, 12 U.S.C. § 1833A ("FIRREA").

Sanction: Civil Penalty(ies)/Fine(s)

How it ended: Judgment Rendered

Resolved: Jul 31, 2014