Frank Wu: Did Wells Fargo Advisor Over-Concentrate Account?

A recent investor complaint against Irvine, California financial advisor Frank Wu (CRD# 1613789) alleges that his conduct resulted in damages exceeding $650,000. Financial Industry Regulatory Authority records show that he is a broker and an investment advisor with Wells Fargo Clearing Services.

Mr. Wu’s BrokerCheck report discloses one investor complaint. Filed in January 2023, it alleges that as a representative of Wells Fargo Clearing Services, he over-concentrated the customer’s account or accounts in unsuitable “high-risk equity funds.” The pending complaint alleges damages of $625,592.85.

Failure to diversify, also referred as over-concentration or concentration, denotes a broker’s failure to invest a customer’s portfolio among a variety of assets. “A diversified portfolio,” FINRA explains in its investor resources, “tends to be harder to achieve than simply following the mantra: don’t put all your investment eggs in one basket.” To avoid risks stemming from over-concentration, FINRA advises investors to diversify their portfolios across and within major asset classes, regularly rebalance their portfolios, examine the underlying products in any mutual funds and exchange-traded funds they’re invested in, and keep track of their investments’ liquidity.

According to the Financial Industry Regulatory Authority, Frank Wu holds 35 years of securities industry experience. Based in Irvine, California, he has been a broker and an investment advisor with Wells Fargo Clearing Services since 2010. His past registrations include Morgan Stanley Smith Barney (Laguna Niguel, California; 2009-2010), Citigroup Global Markets (Laguna Niguel, California; 1993-2009), Lehman Brothers (New York, New York; 1992-1993), and Baraban Securities (Los Angeles, California; 1987-1992). His credentials include the passage of five securities industry qualifying exams: the Futures Managed Funds Examination, or Series 31; the Securities Industry Essentials Examination, or SIE; the Uniform Investment Adviser Law Examination, or Series 65; and the Uniform Securities Agent State Law Examination, or Series 63. He holds 27 state licenses. (Information current as of February 5, 2023.)

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