Definition of Wells Notice

A letter sent by a U.S. regulator – the Securities and Exchange Commission (SEC) or the Financial Industry Regulatory Authority (FINRA) – to an individual or firm notifying them of an impending enforcement action.

The letter broadly outlines the violations the regulator believes took place and allows the subject an opportunity to explain to the regulator why an enforcement action is not warranted. While it is common practice for the SEC and FINRA to provide such notices, the regulators are not legally required to do so. [1]

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