Structured note issuers warned on faulty disclosures

Fines for BAML and UBS highlight importance of accurate cost disclosures

The SEC is targeting hidden costs

Recent enforcement action by the US Securities and Exchange Commission (SEC) against Bank of America Merrill Lynch (BAML) shows the regulator is targeting structured note issuers that bury costs and fees deep within their product prospectuses, say lawyers.

On June 23, BAML agreed to pay $10 million to settle charges that it misled investors in its Strategic Return Notes products, which were sold as a hedge against market volatility.

This is the second time the SEC has charged a structured note i

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