Wells Fargo Ordered to Pay FINRA $3.4M in Restitution for Selling Unsuitable ETPs

Posted on October 18th, 2017 at 10:23 AM
Wells Fargo Ordered to Pay FINRA $3.4M in Restitution for Selling Unsuitable ETPs

From the Desk of Jim Eccleston at Eccleston Law LLC:

FINRA has fined Wells Fargo Clearing Services LLC and Wells Fargo Advisors more than $3.4 million in restitution for selling customers “unsuitable” exchange-traded products (ETPs) and for its failure to supervise reps.

More specifically, according to FINRA, between July 1, 2010, and May 1, 2012, Wells Fargo failed to implement a necessary system to supervise the solicitations and sales of ETPs, which often can be volatile and high risk. The allegations stem from FINRA’s finding that certain Wells Fargo registered representatives recommended risky ETPs without them fully understanding their purpose as a short-term trading strategy.

For further guidance, FINRA has released a regulatory notice called “Heightened Supervision of Complex Products,” available on FINRA’s website.  

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 advisors including Broker Litigation & ArbitrationStrategic Consulting ServicesRegulatory  MattersTransition Contract Review, 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: Jim Eccleston, Eccleston Law, Eccleston Law LLC, Eccleston, Wells Fargo, FINRA

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Marci M.


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