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Wells Fargo Woes Continue: Firm Reportedly Discussing Settlement With DOJ and SEC

By George C. Miller of Shustak Reynolds & Partners, P.C. posted on Friday, March 1, 2019.

As the latest in the seemingly endless flow of regulatory problems at Wells Fargo, the firm is reportedly engaged in preliminary settlement talks with the U.S. Department of Justice and Securities and Exchange Commission concerning alleged improper sales practices, potentially within the company’s wealth management units. According to recent Wells Fargo regulatory filings, regulators are reviewing the same type of sales conduct previously at issue in the firm’s record-breaking, $185 million settlement with the Consumer Financial Protection Bureau, Office of the Comptroller of the Currency and the Office of the Los Angeles City Attorney. [...] Read More

Wells Fargo, Ameriprise and Other Independent Firms Up Recruiting Ante

By George C. Miller of Shustak Reynolds & Partners, P.C. posted on Tuesday, February 12, 2019.

Large up-front, forgivable promissory notes were once the gold standard in financial advisor recruiting. From the early 2000’s through 2017, they were extremely common and used as a way to entice high producing brokers to join (or remain at) the firm recruiting the talent. Virtually all firms—including Morgan Stanley, Merrill Lynch, UBS and Wells Fargo—used these notes as their primary recruiting tool, and almost all were structured the same way--providing for a large, often multi-million dollar “bonus” tied to a promissory note and forgiven over time. Deals totaling 300-350%+ of an advisor’s trailing-12 production were not uncommon. The money was flowing, and many advisors were eager to jump from one firm to another chasing a big payout. [...] Read More

FINRA Highlights 2019 Examination Priorities

By Erwin J. Shustak, Esq. of Shustak Reynolds & Partners, P.C. posted on Wednesday, February 6, 2019.

In its 2019 Risk Monitoring and Examination Priorities Letter, The Financial Industry Regulatory Authority, FINRA, announced its 2019 priorities examination list. [...] Read More

Credit Suisse Deferred Compensation Update

By Erwin J. Shustak, Esq. of Shustak Reynolds & Partners, P.C. posted on Wednesday, January 30, 2019.

Over three years ago, on October 20, 2015, Credit Suisse abruptly announced it was exiting the U.S. wealth management business and closing its U.S. private banking group. At the time, Credit Suisse had over 300 registered brokers in its U.S. private banking unit. [...] Read More

Financial Services Firms to Launch New Members Exchange

By Jonah A. Toleno of Shustak Reynolds & Partners, P.C. posted on Tuesday, January 22, 2019.

Nine financial services firms have announced plans to start their own trading exchange called the “Members Exchange”. Among the founding banks and brokerages are UBS, Morgan Stanley, Bank of America Merrill Lynch, Charles Schwab, and Fidelity Investments. [...] Read More

Edward Jones Awarded Damages in Claim Against Former Broker

By Matias Montillano of Shustak Reynolds & Partners, P.C. posted on Tuesday, January 15, 2019.

On January 9, 2019, a Financial Industry Regulatory Authority (FINRA) panel found a former Edward Jones broker liable for $24,873 in compensatory damages due to the broker’s breach of contract and restrictive covenant with the firm [...] Read More

Financial Adviser Alert: Failure to Comply With FINRA 8210 Request Results in Adviser Bar

By George C. Miller of Shustak Reynolds & Partners, P.C. posted on Monday, January 14, 2019.

In late December 2018, FINRA barred former Morgan Stanley financial advisor Daniel T. Levine from associating with any FINRA member firm in any capacity by way of an Acceptance Waiver and Consent (AWC) settlement agreement.[...] Read More

Former Wells Fargo Advisor Wins $750,000 FINRA Award in Deferred Compensation Claim

By Matias Montillano of Shustak Reynolds & Partners, P.C. posted on Friday, November 9, 2018.

On December 5th, a Financial Industry Regulatory Authority (FINRA) panel in New York city awarded a former Wells Fargo financial advisor, Christopher John Tisi, $750,000 in a claim against Wells Fargo Advisors, LLC for deferred compensation. [...] Read More

Ex-Wells Fargo Advisor Granted Class Cert in Claim for Deferred Compensation

By Matias Montillano of Shustak Reynolds & Partners, P.C. posted on Friday, November 9, 2018.

Robert Berry worked as a financial advisor for Wells Fargo Advisors, LLC from 1994 until 2014. From 2005 to 2014, he participated in the Wells Fargo Advisors Performance Award Contribution and Deferral Plan [...] Read More

Firms Continue Aggressive Tactics Against Departing Advisors

By Katherine S. Bowles, Esq. and Carter E. Watkins of Shustak Reynolds & Partners, P.C. posted on Wednesday, November 21, 2018.

Both Protocol and Non-Protocol firms have continued their sue-first-ask-questions-later litigation strategy against departing advisors, and advisors should be on high alert even when they are making a Protocol transition. [...] Read More