Wells Fargo to Pay $3.4 Million for Recommending Unsuitable ETPs

FINRA has ordered Wells Fargo Clearing Services, LLC and Wells Fargo Advisors Financial Network, LLC to pay more than $3.4 million for making unsuitable recommendations of volatility linked exchange traded products (ETPs) to its customers.

FINRA warns that volatility linked ETPs should not be used as part of a long-term buy and hold investment strategy.

Volatility linked ETPs are highly complex products that are often improperly sold by brokers who believe they could be used as a long-term hedge on equity positions in the event of a market downturn. But volatility linked ETPs are generally short-term products that degrade significantly over time. FINRA warns that volatility linked ETPs should not be used as part of a long-term buy and hold investment strategy.

If you or someone you know has suffered losses as a result of Wells Fargo’s unsuitable recommendations, the attorneys of the Morgan & Morgan Business Trial Group may be able to help.

As the nation’s largest contingency fee law firm, the Business Trial Group has the resources necessary to take on the most complex investment and securities litigation, and is dedicated to achieving the best possible result in your case. Our clients pay no upfront fees or retainers, and we only receive a fee if we successfully recover compensation on your behalf.

For a no cost and no obligation case review, please call us at (877) 599 3102 or fill out our case review form today.