by Brian Mahany
Wells Fargo Advisors Financial Network is ranked one the largest independent broker dealers according to Investment News. It’s also in the news again. The Financial Industry Regulatory Authority (FINRA) just fined Wells Fargo $1 million for failing to provide timely information to mutual fund customers and for other violations.
Stockbrokers and investment advisors must provide mutual fund customers with a prospectus within 3 days of purchase. The prospectus contains key information about the fund’s performance, volatility and investment strategy.Regulators say that Wells Fargo sometimes took almost 6 months to send out the information.
The firm was also charged with failing to report customer complaints.
The brokerage industry is largely self-regulated meaning that broker dealers must report customer complaints and arbitrations to FINRA. That information is public and available on FINRA’s Broker Check website. Thousands of people search these reports daily. The reports let people know if their stockbroker or investment firm has a history of violations and customer complaints.
Wells Fargo admitted no guilt but did agree to pay the fine and “modify procedures where appropriate.”
If an investment advisor or stockbroker made a bad investment recommendation to you, compensation may be available.Investment professionals are charged with knowing your financial situation, risk tolerance and goals. They must recommend investments suitable for you and timely provide disclosures where required, such as mutual fund prospectuses.
Failing to provide a prospectus, not knowing your financial picture, recommending unsuitable investments or simply failing to perform due diligence on the securities and funds recommended to you may provide you with the legal basis for a complaint against your broker.
Mahany & Ertl is a full service law firm concentrating in stockbroker fraud, asset recovery and securities arbitrations. Attorney Brian Mahany is a former securities principal and attorney Joe Bird a former securities arbitrator. We know how to quickly get back your hard earned money. For a no obligation consultation, contact Brian at (414) 704-6731 (direct) or at
Offices in Milwaukee, Wisconsin; Detroit, Michigan & Portland, Maine. Services nationwide.