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


Return to Archive



I learned two important things working with Eccleston Law. First, I made a friend and ally with Jim and Steph for life. Secondly, and this is a crucial life lesson - if you need counsel, then seek out the very best. Jim was referred to me by a most trusted source. I've never had to hire an attorney for anything. Now, I know the value of hiring an important partner. Meticulous, thorough and detailed in preparation is the best way to describe Jim. Brilliant too, I might add. Bottom line, I would highly highly recommend Jim and Stephany for your legal needs. One of the best life decisions I've ever made.

Howard S.


August 8, 2022
SEC Files Suit Against Georgia Advisor Over Misappropriation of Client Funds

The Securities and Exchange Commission (SEC) is filing suit against a Georgia-based advisor, Christopher Burns, who allegedly misappropriated client funds.

August 5, 2022
SEC Fines RIA $5.8 Million Over 12b-1 Fee Infractions Tied to Wrap Accounts

The Securities and Exchange Commission (SEC) has imposed a $5.8 million fine against Private Advisor Group over 12b-1 fee violations tied to its wrap fee program. 

August 4, 2022
North Dakota Regulators Seek to Close Down Advisory Firm Selling Crypto and Weed Products

The North Dakota Securities Commissioner’s office is seeking to shut down a small West Fargo-based registered investment adviser (RIA) after its owner allegedly violated state securities laws and improperly took custody of $17.8 million in client funds beginning in 2017.