Wells took up to 153 days to get prospectuses to mutual fund buyers: Finra

Wells Fargo & Co. will pay $1 million to resolve Financial Industry Regulatory Authority claims that its St. Louis-based brokerage didn't give investment information in a timely manner to clients who bought mutual funds in 2009. Wells Fargo Advisers violated securities laws by failing to deliver prospectuses within three days of the purchases, Finra said today in a statement. The firm took as long as 153 days to provide prospectuses and also failed to report information including arbitrations and complaints involving some of its representatives, Finra said. The company failed to take corrective action after getting reports from a firm contracted to mail the prospectuses that as many as 9 percent of customers hadn't received the information within three days, Finra said. “Mutual fund prospectuses contain key information about a fund's performance, risks, strategies and costs,” Brad Bennett, Finra's enforcement chief, said in the statement. “Wells Fargo ignored reports alerting them to serious problems with its prospectus delivery system and, as a result, its customers were deprived of valuable information.” Wells Fargo, the fourth biggest U.S. bank by assets, resolved the claims without admitting or denying wrongdoing, Washington-based Finra said. “Wells Fargo Advisors has reached an agreed resolution with Finra and is pleased to put this matter behind us,” Tony Mattera, a company spokesman, said in the statement. “Wells Fargo Advisors has taken steps to review and modify procedures where appropriate.” --Bloomberg News--