Longtime Merrill Lynch Broker Barred After Refusing to Testify About Commissions

Daniel G. Diaz, a broker with Merrill Lynch for more than 35 years, agreed to a bar from the securities industry under a Letter of Acceptance, Waiver, and Consent (AWC) with FINRA. According to FINRA, in July 2026, Diaz refused to appear for on-the-record testimony, in violation of FINRA Rules 8210 and 2010. FINRA requested the testimony during its investigation into his potential involvement with excessive commissions on certain securities transactions. FINRA's findings concern only Diaz's refusal to testify, not the commission allegations. Diaz consented to FINRA's findings without admitting or denying them.

Diaz first registered with FINRA in 1987 as a General Securities Representative. In October 1989, he registered with Merrill Lynch, Pierce, Fenner & Smith Incorporated. On March 21, 2025, Merrill Lynch filed a Form U5 stating that it discharged Diaz for "[f]ailure to follow management's decision to apply discounts to the commissions applicable to certain customer accounts." In May 2025, Diaz registered with another FINRA member firm, which reported his voluntary termination on September 8, 2025. Diaz was not registered with any FINRA member firm at the time of the AWC.

FINRA Rule 8210 allows FINRA to require brokers and other persons under its jurisdiction to provide information, documents, and on-the-record testimony during an investigation, and it prohibits anyone from refusing to do so. A violation of Rule 8210 also violates FINRA Rule 2010, which requires brokers to observe high standards of commercial honor and just and equitable principles of trade. Because FINRA depends on these requests to investigate potential misconduct, a complete refusal to cooperate typically results in a bar. For example, a broker would violate these rules by ignoring a FINRA letter requesting bank statements, or by telling FINRA through a lawyer that he will not appear for testimony.

According to FINRA, the case arose from its review of Merrill Lynch's March 2025 Form U5. On July 20, 2026, as part of its investigation into Diaz's potential involvement with excessive commissions on certain securities transactions, FINRA asked him to appear for on-the-record testimony. The next day, Diaz's counsel told FINRA by email that Diaz received the request and would not appear at any time. Merrill Lynch's Form U5 tied his discharge to his failure to apply commission discounts that management approved for certain customer accounts. By refusing to testify, Diaz ended FINRA's ability to question him about the commissions, and the bar ends a securities career of nearly four decades.

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