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.