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

Return to Archive

TESTIMONIALS

Previous
Next

If you are being bothered by the Regulators, call Eccleston Law, you won't regret it.

Rick R.

LATEST NEWS AND ARTICLES

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.