FINRA Fines Wells Fargo $2M Over Reverse Convertibles

Law360, New York (December 15, 2011, 1:47 PM EST) -- The Financial Industry Regulatory Authority on Thursday fined a Wells Fargo & Co. unit $2 million over unsuitable sales of reverse convertible securities to mostly elderly customers and for failing to discount unit investment trust transactions for eligible clients.

Wells Fargo Investments LLC customers who did not receive UIT sales charge discounts and certain customers who received unsuitable reverse convertible transactions will receive restitution under the settlement, the regulator said.

Wells Fargo neither admitted nor denied the charges in consenting to FINRA's findings.

“Wells Fargo failed...
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