Wachovia fined $300,000 by FINRA

The regulator said Wachovia violated research analyst conflict of interest disclosure rules.

Wachovia Capital Markets LLC, a subsidiary of Charlotte, N.C.-based Wachovia Corp., was censured and fined $300,000 by the Financial Industry Regulatory Authority for violating research analyst conflict of interest disclosure rules.
The New York- and Washington-based self-regulatory organization said that Wachovia failed to include 56 disclosures in 40 research reports that concern Wachovia’s financial relationships with the subject companies.
In 20 of those reports, Wachovia failed to disclose that it managed or co-managed a public offering of securities issued by the subject company.
In other reports, Wachovia was accused of failing to disclose that it received compensation from the subject company for investment banking services, that it owned an interest in the common stock of the company, or that it was a market-maker in the securities of the company.
Wachovia also failed to adequately implement supervisory procedures concerning its research disclosures, according to FINRA.
In settling the matter, Wachovia neither admitted nor denied the charges, but agreed to FINRA’s findings.