Merrill Lynch agreed to pay about $425,000 to Virginia to settle allegations that some of its administrative and sales support staff involved in securities transactions in the state were not registered under the Virginia Securities Act.

The allegations involve client associates, who typically support Merrill Lynch’s financial advisors, according to the Virginia State Corporation Commission (SCC).

The SCC issued a consent order Dec. 17, finalizing Virginia’s participation in a global settlement involving the firm, which is organized as Merrill Lynch, Pierce, Fenner & Smith Inc.

The global settlement was achieved following a multi-state investigation coordinated by the North American Securities Administrators Association, initiated in May 2008. As a result of the investigation, the firm discovered that 60% of its client associates were only registered in their home state, or their home state and one additional state.

In Virginia, many unregistered client associates were assisting registered financial advisors. The company has implemented a new internal system to ensure registration compliance, according to the SCC.

The amount the company is paying to Virginia is a proportional share of the $26.56 million in fines, penalties and sanctions available to the 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands represented by NASAA’s working group.