FINRA fines Wells Fargo unit $3M for repeatedly pushing ‘unsuitable’ investments
By 
Aaron Nicodemus2024-09-17T14:27:00
A Wells Fargo subsidiary will pay nearly $3 million to settle allegations that it failed to properly supervise an employee attempting to sell unsuitable investment products to retail investors–the fifth time it has been penalized for similar supervisory failings since 2020.
The Financial Industry Regulatory Authority (FINRA) said in a disciplinary action Thursday that Wells Fargo Clearing Services (WFCS) will pay a $400,000 fine, $600,000 in restitution, and $2 million in disgorgement for failing to prevent an employee from engaging in unsuitable, short-term trading in several investment products for retail investors in 2017 and 2018.
The firm also failed to properly follow up on red flags of the employee’s trading in these products, like by restricting his ability to make new sales in those products.
Related articles
-
News BriefFINRA ends year with string of fines against Jefferies, UBS, Citi, Barclays
The Financial Industry Regulatory Authority issued fines against four large banks to end 2024, all for different alleged misconduct, but all related to the firms’ failures to implement a supervisory system reasonably designed to achieve compliance with FINRA rules.
-
News BriefDrexel Hamilton to pay $1.1M, four employees fined for ‘flipping’ municipal bonds
New York-based investment firm Drexel Hamilton will pay more than $1.1 million in penalties, with four current and former employees paying fines as well over committing hundreds of violations of rules regarding the sale of municipal bonds.
-
News BriefWells Fargo agrees with OCC to shore up BSA/AML, sanctions program deficiencies
The Treasury Department’s Office of the Comptroller of the Currency ordered Wells Fargo to make “comprehensive corrective actions” to its Bank Secrecy Act/anti-money laundering and U.S. sanctions programs, along with receive permission from the OCC to offer new products and services or enter new geographic markets with “medium or high” ...
More from Regulatory Enforcement
-
ArticleGeorgia Tech to pay $875,000 for allegations brought by compliance officers
Georgia Tech Research Corp. (GTRC) has agreed to pay $875,000 to settle allegations first raised by two compliance officers that its cybersecurity protocols violated acceptable standards for defense contractors, the Department of Justice (DOJ) said.
-
ArticleTractor Supply Company hit with $1.35M fine for alleged California privacy violations
Tractor Supply Company has agreed to get into compliance with California’s consumer privacy law and to pay a $1.35 million fine—the largest yet by California—to settle allegations it violated the privacy rights of customers and job applicants.
-
Basic PageLuminUltra fined $685K by BIS for illegal shipment to Iran
A single $33,000 shipment to Iran triggered a six-figure penalty and years of compliance oversight for biotechnology company LuminUltra Technologies, Inc.