Wells Fargo Head Nudges Advisors Away from Picking Individual Stocks

Posted on November 18th, 2013 at 10:55 AM

From the Desk of Jim Eccleston at Eccleston Law Offices:

Wells Fargo & Co.’s (WFC) new brokerage chief, Mary Mack, plans to deter advisers from picking individual stocks instead putting more retail clients into managed accounts.

            U.S. banks are seeking to tighten their grip on clients and make it harder for advisers to take customers and assets if they defect.  In addition, centrally managed accounts with broader holdings make it less likely that brokers can violate suitability obligations.

            At Wells Fargo, assets in managed accounts rose 18% to $331 billion last year, an amount that is meager compared with those at Morgan Stanley and Bank of America Corp.  Firms view managed accounts as a way to bolster customer loyalty and foster a willingness to pay for advice.

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


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