FINRA said the brokerage unit of Wells Fargo, also delayed in reporting material information about its current and former representatives, including arbitrations and complaints involving its representatives.
The regulator said that Wells Fargo failed to adhere with the federal securities laws, where it requires to deliver prospectuses within three business days of the transaction.
It has found that the customers received their prospectuses from one to 153 days late.
According to the FINRA, they have also found that Wells Fargo did not promptly report required information to it regarding their current or former representatives.
FINRA found that between 1 July 2008 and 30 June 2009, Wells Fargo failed to update 8.1% of their Forms U4 and 7.6% of the Forms U5 on time. In total, Wells Fargo filed nearly 190 late amendments to Forms U4 and U5.
FINRA executive vice president and chief of enforcement Brad Bennett said Wells Fargo ignored reports alerting them to serious problems with its prospectus delivery system and, as a result, its customers were deprived of valuable information needed to make informed investment decisions.
