Wells Fargo Advisor Sanctioned Due to Role as Customer Account Beneficiary

Posted on May 26th, 2023 at 2:14 PM
Wells Fargo Advisor Sanctioned Due to Role as Customer Account Beneficiary

From the desk of Jim Eccleston at Eccleston Law 

The Financial Industry Regulatory Authority (FINRA) has imposed a suspension and a $5,000 fine on Mark A. Brewer, a Wells Fargo Advisor, for acting as a beneficiary on a customer account.

According to FINRA's allegations, Brewer recommended that a customer name his close friend on her account after Wells denied a request for Brewer to name himself as a beneficiary. According to AdvisorHub, Wells rejected the request in alignment with their policy that prevents advisors from being named beneficiaries on accounts other than an immediate family member.

Brewer's recommendation violated FINRA Rule 3241. Rule 3241 prohibits advisors from serving as a client's beneficiary unless the request is from a family member or the firm consents after performing a reasonable assessment. Rule 3241 also bars advisors from instructing clients to name another person, such as a friend or family member of the advisor, to be beneficiary.

Brewer also violated FINRA's Rule 2010, which requires advisors to observe high standards of commercial honor. Brewer accepted the suspension without admitting or denying the allegations.


Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory and disciplinary matters.

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