SEC Fines Wells Fargo Advisors $5 Million Over Sales Misconduct Charges

Posted on June 29th, 2018 at 11:11 AM
SEC Fines Wells Fargo Advisors $5 Million Over Sales Misconduct Charges

From the Desk of Jim Eccleston at Eccleston Law LLC:

Wells Fargo Advisors has agreed to pay the SEC over $5 million to settle claims that the firm generated large fees by improperly encouraging retail customers to trade debt securities known as market-linked investments (MLIs).

More specifically, the SEC found that Wells Fargo supervisors failed to adequately understand or investigate the costs arising from recommendations to trade the MLIs actively, when the products were intended to be held until maturity. According to the SEC, the strategy of trading MLIs before the maturity date generated returns for Wells Fargo, while reducing investor profits. Moreover, Wells Fargo brokers actively traded MLIs for customers despite the firm’s policy against “flipping” the product.

As part of the settlement, without admitting or denying its wrongdoing, Wells Fargo agreed to pay $4 million in fines, as well as pay customers restitution in the amount of $1.1 million for the firm’s misconduct.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: james eccleston, eccleston law, eccleston law llc, eccleston, SEC, Wells Fargo

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Thank you for your professional assistance with this matter. You are very good at what you do.

John T.


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