A self-regulatory organization that oversees member brokerage firms and exchange markets just slapped Wells Fargo’s investment operation with a $275,000 fine.
The Financial Industry Regulatory Authority (FINRA) says it imposed the penalty following Wells Fargo Clearing Services’ failure to comply with the organization’s rules.
In a letter of acceptance, waiver and consent (AWC) addressed to FINRA’s Department of Enforcement, Wells Fargo—a member firm since July 1987 – acknowledged that it failed to abide by this requirement from at least June 2019 to November 2024.
“[W]ells Fargo had hundreds of municipal entity customers who transacted in municipal and non-municipal securities in their firm accounts, but the firm was not registered as a municipal advisor. Wells Fargo did not establish and maintain a supervisory system, including WSPs, that was reasonably designed to ensure that the firm’s and its associated persons’ investment-related activities did not require the firm to register as a municipal advisor.”
FINRA requires member firms to establish, maintain and enforce a supervisory system, including written supervisory procedures (WSPs), to comply with the securities law prohibiting unregistered municipal advisory activity.
Wells Fargo says it is consenting to the imposition of a censure and fine on the condition that FINRA will not initiate future actions involving the findings of the violation.
“Respondent agrees to pay the monetary sanction upon notice that this AWC has been accepted and that such payment is due and payable.”
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