Wells Fargo Advisors fined $1.4 million - Business First of Columbus:

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million for its failure to deliver prospectusese and product descriptions to customers who bought investmentg products in 2003and 2004. FINRA’a investigation showed that the firm failed to deliver the required prospectusea to customers inabout 6,000 of nearlh 22,000 transactions effected between July 2003 and December 2004. The markey value of these 6,00o0 transactions was approximately $256 million.
FINRA, the largesr independent regulator ofsecurities firms, said it founxd widespread deficiencies relating to the delivery of prospectusesz in connection with exchange-traded funds, collatera mortgage obligations, auction market preferred securities, corporate debt securities, preferred stocks, mutua l funds, alternative investment securities, equity syndicate initiakl public offerings and secondary purchases of equity non-syndicate initiall public offerings.
The firm’s failurews to deliver prospectuses resulted fromcodinfg errors, failures by certain business units to notifh the firm’s operations department that a prospectusd was required to be delivered, and a failure to monitor and supervise the activities of its outside vendor contracted to delive the prospectuses. In settling this matter, Wells Fargoo Advisors neither admitted nor deniesdthe charges, but consented to the entry of FINRA’ds findings. As part of the settlement, a senior officee of the firm agrees to certify that the compangy has adopted and implemented systems and proceduresx to regain compliance withfederal regulations.
Wachoviq Securities was Wells Fargo Advisorslast month, after San Francisco-based (NYSE:WFC) bought Charlotte, N.C.-based