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

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million for its failure to delive r prospectuses and product descriptions to customers who bought investmentr products in 2003and 2004. FINRA’s investigation showesd that the firm failed to delivef the required prospectuses to customers inabout 6,000 of nearlh 22,000 transactions effected between July 2003 and Decembed 2004. The market value of these 6,0000 transactions was approximately $256 FINRA, the largest independent regulator ofsecurities firms, said it founfd widespread deficiencies relating to the deliverh of prospectuses in connectiohn with exchange-traded funds, collateral mortgage obligations, auctiojn market preferred securities, corporate debt securities, preferred mutual funds, alternative investment securities, equity syndicater initial public offerings and secondaryy purchases of equity non-syndicate initial public offerings.
The firm’sd failures to deliver prospectusesw resulted fromcoding errors, failures by certain business units to notify the firm’es operations department that a prospectus was required to be and a failure to monitor and supervise the activities of its outsidee vendor contracted to deliver the prospectuses. In settling this Wells Fargo Advisors neither admitted nor deniefdthe charges, but consented to the entryt of FINRA’s findings. As part of the settlement, a seniotr officer of the firm agreed to certify that the company has adopter and implemented systems and procedures to regain complianc e withfederal regulations.
Wachovia Securities was Welles Fargo Advisorslast month, after San Francisco-basec (NYSE:WFC) bought Charlotte, N.C.-based