Craigg McRae, a former registered representative with Wells Fargo Advisors, has been fined $5,000 and suspended for 15 days by FINRA after an AWC dated June 30, 2026 found he exercised discretion in six customer accounts without written authorization. The sanctions run from June 30, 2026 through July 14, 2026 and mark another enforcement action in FINRA’s ongoing scrutiny of unauthorized trading practices.
What happened
FINRA Rule 3260 prohibits brokers from exercising discretionary power in customer accounts unless the customer provides prior written authorization and the member firm approves the account for discretionary trading. McRae violated this rule by making trades in six customer accounts without the required documentation.
The misconduct was uncovered during a routine FINRA examination. McRae consented to the findings and sanctions without admitting or denying the allegations. The AWC was accepted by FINRA on June 30, 2026.
Key facts
| Individual | Craigg McRae |
| Former firm | Wells Fargo Advisors |
| Fine | $5,000 |
| Suspension | 15 days (June 30 – July 14, 2026) |
| Violation | FINRA Rule 3260 – unauthorized discretion |
| Accounts affected | 6 customer accounts |
| AWC date | June 30, 2026 |
Why unauthorized discretion matters to investors
When a broker exercises discretion without written authorization, the customer loses control over which securities are bought or sold and at what prices. This removes the safeguard of customer approval before each trade and can lead to unsuitable investments, excessive commissions, or concentrated positions the investor never agreed to hold.
Unauthorized discretion also complicates legal recourse. Investors may not realize trades occurred until they review monthly statements, by which time losses have accumulated. The lack of written authorization makes it easier for investors to demonstrate a violation in arbitration, but the financial damage may already be done.
Red flags that should have been caught
Firms are required to maintain systems that flag accounts trading without proper authorization paperwork. A broker placing multiple trades across six accounts without corresponding discretionary agreements should trigger an automated or manual compliance review.
Wells Fargo Advisors, as a major wirehouse, maintains supervisory protocols designed to catch exactly this type of omission. The fact that McRae’s trades went undetected until a FINRA examination raises questions about whether the firm’s surveillance was sufficient during the period in question.
What affected investors can do now
Investors who held accounts with Craigg McRae at Wells Fargo Advisors and experienced losses during the period of unauthorized discretion should review their trade confirmations and monthly statements for trades they did not authorize. Document every unauthorized transaction, including dates, symbols, quantities, and prices.
Investors have the right to file a FINRA arbitration claim against both the individual broker and the employing firm. Arbitration does not require an attorney, but securities attorneys can help gather records, calculate damages, and present the case to a panel. Most investor claims are resolved through settlement or arbitration award rather than court litigation.
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