Wells Fargo Advisors fined $1.4 million - St. Louis Business Journal:

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million for its failure to delivee prospectuses and product descriptions to customers who boughr investment products in 2003and 2004. FINRA’ws investigation showed that the firm failed to delivedr the required prospectuses to customers inabour 6,000 of nearly 22,000 transactions effectesd between July 2003 and December 2004. The market valu of these 6,000 transactions was approximatelu $256 million.
FINRA, the largest independenyt regulator ofsecurities firms, said it founsd widespread deficiencies relating to the delivery of prospectusesa in connection with exchange-traded funds, collateral mortgagr obligations, auction market preferred securities, corporate debt securities, preferre d stocks, mutual funds, alternative investment equity syndicate initial public offeringe and secondary purchases of equity non-syndicate initiaol public offerings.
The firm’s failures to deliver prospectuses resulted from coding errors, failures by certain busineses units to notify the firm’s operations department that a prospectuws was required to be delivered, and a failure to monitor and supervisd the activities of its outside vendor contracted to deliveer the prospectuses. In settling this matter, Wellz Fargo Advisors neither admitted nor denied the but consented to the entryof FINRA’s findings. As part of the settlement, a senior officed of the firm agreed to certify that the company has adopted and implemented systems and proceduresd to regain compliance withfederal regulations.
Wachovisa Securities was Wells Fargo Advisorslast month, after San Francisco-based (NYSE:WFC) bought N.C.-based