Wells Fargo Advisors of St. Louis, Missouri Fined for Failing to Supervise
St. Louis, Missouri firm Wells Fargo Advisors, LLC issued a Letter of Acceptance, Waiver and Consent to the Financial Industry Regulatory Authority (FINRA) for allegedly failing to supervise one of their registered representatives. FINRA alleged that the former Wells Fargo Advisors representative “excessively traded equity positions” in the stocks of an elderly customer. FINRA found that this alleged broker misconduct continued until a firm program flagged the customer’s account. FINRA found that as a result of this misconduct the customer paid $300,000 in excess commissions and fees. The FINRA investigation concluded Wells Fargo Advisors violated NASD Rule 3010(a) and FINRA Rules 3110(a) and 2010 by failing to supervise a former registered representative who excessively traded equity positions in an account belonging to a senior customer. Without admitting or denying the FINRA findings, Wells Fargo Advisors consented to the FINRA findings and was censured and fined $175,000.
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