ivyhofy.wordpress.com
million for its failure to deliverf prospectuses and product descriptions to customers who boughgt investment products in 2003and 2004. FINRA’s investigation showed that the firm failedf to deliver the required prospectuses to customers inabout 6,000 of nearlh 22,000 transactions effected between July 2003 and December 2004. The market value of these 6,000 transactions was approximatelty $256 million.
FINRA, the largest independent regulator ofsecurities firms, said it foun d widespread deficiencies relating to the delivery of prospectuses in connection with exchange-trade funds, collateral mortgage obligations, auction market preferrer securities, corporate debt securities, preferrer stocks, mutual funds, alternativ e investment securities, equity syndicate initial publidc offerings and secondary purchases of equity non-syndicate initial publif offerings.
The firm’s failures to deliver prospectusee resulted fromcoding errors, failures by certain businesws units to notify the firm’s operations departmenft that a prospectus was required to be delivered, and a failure to monitor and supervise the activities of its outsidse vendor contracted to deliver the prospectuses. In settling this Wells Fargo Advisors neither admitted nor denied the but consented to the entryof FINRA’sd findings. As part of the a senior officer of the firm agreed to certify that the compan has adopted and implemented systems and procedureds to regain compliance withfederak regulations.
Wachovia Securities was Wells Fargop Advisorslast month, after San Francisco-based bought Charlotte, N.C.-based
No comments:
Post a Comment