Wells Fargo Brokers Hesitate to Sign New Team Agreements

Posted on June 24th, 2014 at 9:00 AM

From the Desk of Jim Eccleston at Eccleston Law Offices:

Securities firms have been encouraging brokers to work on teams to increase contact options for clients, to enhance selling of specialized services and products and to make it more difficult for individuals to jump to another firm.

Wells Fargo Advisors have outlined a new team agreement to promote teams rather than individual advisors. The new team benefits will be made available to the more than 11,000 brokers.

According to the agreement, brokers who sign the deal may receive some bonuses they otherwise would not qualify for individually. And for the first time, Wells Fargo said advisors could share deferred bonus awards, devise inter-team revenue splits, and transfer revenue-target goals and recognition club trips among themselves.

However, some reps still hesitate to sign the agreement because they are concerned that the agreement could lead to a client grab when teams change or dissolve. The team agreement allows Wells to dissolve the team at its discretion if it determines the action is in the best interest of the clients, the team members or the firm. More importantly, it allows Wells to override the teams’ own arrangements for reassigning accounts when a broker leaves or dies, and to assign that person's accounts to brokers outside the team.

The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 50 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston


Return to Archive



Thank You from the bottom of our hearts for all you have done for us. When we realized this was a very bad investment - we did not know where to turn for help. Then we received your name. When we called you - you were so kind to us and then agreed to help us. For this we are so very grateful. The world would be a much nicer place if there were more people like the two of you in it. We will always remember all the help and kindness you have shown us. Thank you so very very much for everything.

Wayne and Judy S.


October 27, 2021
Former LPL Advisor Suspended For Completing 22 Trades Absent Client Consent

The Financial Industry Regulatory Authority (FINRA) has suspended and fined a former LPL advisor who allegedly completed 22 trades on behalf of a client without obtaining written consent. FINRA has issued a $5,000 fine and has suspended Michael Hartlett for 10 days.

October 26, 2021
Former Advisor Fails To Reverse Bar After Alleged $1 Million Theft From RBC

A former RBC Wealth Management advisor lost his bid to reverse an industry bar, according to an appellate decision issued by the Financial Industry Regulatory Authority (FINRA).

October 25, 2021
Firms Walk Thin Regulatory Line In Referring Self-Directed Clients To Advisors

While online trading platforms have surged in popularity during the pandemic, brokerage firms view self-directed investors as a source of new clients.