Financial Industry Regulatory Authority (FINRA) has banned Wells Fargo Advisors, a financial advisor. Wells Fargo Advisor was not cooperating with FINRA’s investigation. Stephen Klinger, a broker of Wells Fargo had revealed earlier that he had traded options on his own account for a client and he lost the client’s money. FINRA is investigating this case and it found Well Fargo is not behaving well.
FINRA curb brokers and financial advisors who violate the rules of the industry and do not cooperate with the investigation process.
Wells Fargo Advisors asked for Mr. Klinger’s release in February after depositing the client’s fund into his account to avoid trading options and lost all client funds. Then the client filed a lawsuit against Wells Fargo and Mr. Klinger but the lawsuit was only notified to Mr. Klinger.
He fixed the problem without telling Wells Fargo. Later FINRA found that the company is using the client and got banned. According to AlphaBetaStock.com, Klinger was registered with Wells Fargo since 1994 and he accepted a FINRA agreement without denying its results.
The US Financial Industry Regulatory Authority (FINRA) is a private corporation that works as a self-regulatory organization. It allows investors and firms to take part in the market without breaking the integrity. FINRA employees have expertise, leading technology and extensive market intelligence to serve the brokerage industry. It awards the good financial companies and curbs the non-cooperators.