December 2016
Wells Fargo was censured and fined $1,000,000 by the Financial Industry Regulatory Authority over its lack of supervision related to the preparation and dissemination of consolidated reports showing a customer’s financial holdings. FINRA record (CRD) for Wells Fargo.
According to the FINRA findings, between June 2009 and June 2015, Wells Fargo brokers were allowed to prepare consolidated reports for customers using various software programs available to them. FINRA found that the supervisory system was inadequate because there was no mechanism in place to distinguish between reports that were drafted by brokers and never sent to customers and those reports that were completed and sent to customers.
Firms Have a Duty to Supervise their Financial Advisors (FINRA Rules 3110 & 2090)
Brokers and their firms have a duty to comply with the FINRA suitability rule which requires that they have a reasonable basis to believe that a recommendation is suitable for the customer. FINRA Rule 2111- suitability
If you have questions about losses in your brokerage account, call for a no charge consultation to learn about your options.
Investigations involving other Wells Fargo brokers
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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