FINRA Fines Wells Fargo Clearing Services for Compliance Violations

Wells Fargo Clearing Services Censured & Fined

According to the Financial Industry Regulatory Authority, Wells Fargo Clearing Services, LLC (CRD #19616, St. Louis, Missouri) submitted an AWC in which the firm was censured, fined $20,000, and required to pay $4,543.08, plus interest, in restitution to investors.

Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it failed to fully and promptly execute 50 market orders in preferred securities.

The findings stated that in 19 of those 50 transactions, the firm failed to use reasonable diligence to ascertain the best interdealer market, and failed to buy or sell in such market so that the resultant price to its customer was as favorable as possible under prevailing market conditions.

For FINRA’s full findings see FINRA Case #2016049925401.

Wells Fargo Clearing Services, LLC provides account statements, trade confirms and other record-keeping, operational, clearing, and custodial services for introducing brokerage firms. Wells Fargo Clearing Services, LLC was formerly known as First Clearing, LLC and changed its name to Wells Fargo Clearing Services, LLC in November 2017. The company was founded in 1934 and is based in St. Louis, Missouri.

Wells Fargo Clearing Services, LLC operates as a subsidiary of Wells Fargo Advisors, LLC.

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This information, which is publicly available on FINRA’s website has been provided by The White Law Group.

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