Wells Fargo Flearing Services, LLC, agreed to pay a fine of $ 150,000 as part of a settlement with the Financial Industry Regulatory Authority (FINRA).
From January 2014 to March 2022, Wells Fargo failed to create and maintain a supervisory system, including written supervision procedures, which is reasonably designed to preserve customer information
When registered representatives abandoned the company, Wells Fargo will notify the insurance carriers so that carriers can remove access to the representatives of these variable revenues of companies’ customers to the conveyor gates.
The company only provided alerts to representatives described as “production” (that is, tasked with selling products to customers) and did not alert the insurance carriers when “non -production” departed representatives. However, Wells Fargo, however, transferred to some registered representatives who produce as a non -production within its internal system.
As a result, when 241 left these registered representatives, insurance carriers were not informed. As a result, these former representatives have continued to maintain their access to 1,624 customer revenue accounts at the conveyors gates, including names, addresses, account numbers, other accounts, and in at least some cases, other non -public information, such as dates.
In March 2022, Wells Fargo informed the carriers of the former delegates he had previously missed. The company also modified its procedures to require carriers to be notified of all representatives who leave the business, regardless of their status as production or non -production.
With the failure to determine a supervisory system that is reasonably designed to safeguard customers’ information, Wells Fargo violated Rule 30 (a) of the SP Regulation, FINRA 3110 (A), 3110 (B) and 2010 and Rule 3010.
In addition to a fine of $ 150,000, the company agreed on a accusation.