The Financial Industry Regulatory Authority has censured Wells Fargo Advisors and fined the firm $175,000 for failing to supervise a registered rep who excessively traded equity positions in the three accounts of an 88-year-old client.
Finra said that the Wells Fargo rep made more than 2,000 trades in the client’s three accounts from March 2012 to March 2016. The trades resulted in $300,000 in commissions and other fees paid to the broker.
Wells Fargo’s systems detected the trades, Finra said, but the firm did not look into the trading more fully.
After an investigation that took place in 2016, Wells Fargo fired the client’s broker and paid $1 million in restitution to settle a complaint the client filed about the handling of her accounts.
Broker-dealers that sold the defunct securities backed by Inspired Healthcare generated more than $100 million in fees and commissions.
FINRA barred the advisor, Sung Moo Cho, last month.
A new MetLife survey finds real estate professionals are increasingly steering clients toward tax experts as rising property values leave more sellers facing significant capital gains.
The independent broker-dealer expands its business development bench with a new recruiter and an internal promotion in the West.
The leading ultra-high-net-worth RIA joins other large wealth firms, including Raymond James and LPL, in creating executive roles focused on artificial intelligence strategy
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.
