On May 5th, FINRA announced it has fined Wells Fargo Advisors, $1 million for its failure to deliver prospectuses to 934,000 investors who invested in Wells Fargo mutual funds in a timely manner. Customers who purchased mutual funds in 2009 received their prospectuses as much as 153 days late. There were also delays in reporting material information about its current and former representatives, including arbitrations and complaints involving its representatives.
In 2009, Wells Fargo contracted with a third-party service provider to mail the prospectuses to customers. However, after receiving quarterly reports showing between 4% and 9% of the firm’s mutual fund customers failed to receive prospectuses on time and after being notified in daily reports that a number of prospectuses still require delivery, Wells Fargo did not take adequate corrective measure to ensure future delivery of the prospectuses in a timely manner.
Wells Fargo settled this matter with FINRA, neither admitted nor denied the charges. Nonetheless, the firm consented to the entry of FINRA’s findings.
If you are an investor that suffered losses as a result of Wells Fargo's late prospectus delivery, please contact one of the attorneys at the Eccleston Law Offices at 312-332-0000 to discuss your recovery options.
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