Wells Fargo Advisors—Unsuitable Recommendations to Retail Customers

Wells Fargo Advisors Allegedly Made Unsuitable Recommendations to Retail Customers to Purchase Structured Repackaged Asset-Backed Trust Securities (STRATS)

Wells Fargo Advisors allegedly made unsuitable recommendations to retail customers to purchase Structured Repackaged Asset-Backed Trust Securities (STRATS), according to a recent FINRA Letter of Acceptance, Waiver and Consent (AWC).

What is more, the AWC further alleges that Wells Fargo Advisors allegedly failed to educate its registered representatives regarding these risks, and its sales force therefore could not inform retail customers who purchased the STRATS that they could suffer significant losses.

Wells Fargo Advisors Allegedly Failed to Educate its Sales Force, Censured by FINRA, and Fined $500,000

Wells Fargo Advisors allegedly failed to establish and maintain supervisory procedures, including training of its registered representatives appropriately designed to achieve compliance with FINRA suitability standards, according to the AWC.

Wells Fargo Advisors also allegedly did not provide product specific training to its registered representatives, and the internal-use only materials made available to its registered representatives did not adequately inform its representatives about the risks of investing in the STRATS, the AWC further reports.

Based on the aforementioned, Wells Fargo Advisors allegedly violated NASD and FIRNA Rules, and also consents to the imposition of a censure and a $500,000 fine.

Wells Fargo Advisors did not admit to or deny FINRA’s allegations.

The Peiffer Rosca Wolf Investor Rights Lawyers Assisting Investors

The Peiffer Rosca Wolf investor rights lawyers often represent investors who lose money as a result of unsuitable recommendations. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of unsuitable recommendations may contact the investor rights lawyers at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.

Alan Rosca (1225 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.