Source: flickr.com; (CC BY 2.0)
In a statement the Securities and Exchange Commission has ordered Wells Fargo & Co to pay $35 million towards its failure to inadequately supervise investment advisers who recommended high-risk products.
Following an investigation, the SEC charged Wells Fargo Clearing Services and Wells Fargo Advisors Financial Network of failing to supervise investment advisers who recommended single-inverse exchange-traded funds (ETFs).
Well Fargo’s advisers recommended these investments to customers with conservative or moderate risk tolerances, which includes senior citizens and retirees, said the SEC in a filing.
The SEC order comes just a week after Wells Fargo & Co agreed to shell out $3 billion in a deal with the SEC and the Justice Department to resolve criminal charges over its fake-accounts scandal.
In the latest SEC’s order, Wells Fargo has neither admitted nor denied the SEC’s findings. The $35 million will be distributed to certain people who received the recommendations and suffered losses, said the SEC.
“Firms must maintain effective compliance and supervisory programs to ensure that the securities they recommend are suitable for their clients,” said Antonia Chion, associate director of the SEC enforcement division, in a statement.
References:
reuters.com
Following an investigation, the SEC charged Wells Fargo Clearing Services and Wells Fargo Advisors Financial Network of failing to supervise investment advisers who recommended single-inverse exchange-traded funds (ETFs).
Well Fargo’s advisers recommended these investments to customers with conservative or moderate risk tolerances, which includes senior citizens and retirees, said the SEC in a filing.
The SEC order comes just a week after Wells Fargo & Co agreed to shell out $3 billion in a deal with the SEC and the Justice Department to resolve criminal charges over its fake-accounts scandal.
In the latest SEC’s order, Wells Fargo has neither admitted nor denied the SEC’s findings. The $35 million will be distributed to certain people who received the recommendations and suffered losses, said the SEC.
“Firms must maintain effective compliance and supervisory programs to ensure that the securities they recommend are suitable for their clients,” said Antonia Chion, associate director of the SEC enforcement division, in a statement.
References:
reuters.com
