Wells Fargo & Company (NYSE:WFC) has been charged a $35 million civil penalty by the Securities and Exchange Commission for overcharging more than 10,900 investment advisory accounts over $26.8 million in advisory fees.
The regulatory watchdog claimed that Wells Fargo and its predecessor firms overcharged certain clients who opened accounts before 2014 for advisory fees through the end of December 2022.
“For years, Wells Fargo and its predecessor firms negotiated reduced advisory fees with thousands of clients, but failed to honor them, overcharging those clients millions of dollars as a result,” said Gurbir S. Grewal, Director of the SEC’s Enforcement Division.
Also Read: Wells Fargo Faces Potential NLRB Action Over Labor Law Violations at Oregon Call Center
Wells Fargo paid affected accountholders approximately $40 million, including interest, to reimburse them for the overcharging.
“Today’s enforcement action underscores the need for firms growing their businesses through acquisition to ensure that their growth does not come at the expense of client protection,” Grewal added.
Last year, the Consumer Financial Protection Bureau accused Wells Fargo of widespread mismanagement of auto loans, mortgages, and deposit accounts.
The bank was asked to pay more than $2 billion in redress to consumers and a $1.7 billion civil penalty for legal violations across several of its largest product lines.
Photo Via Company
