Defendant Name: Wells Fargo Clearing Services, LLC

Defendant Type: Subsidiary of Public Company
Public Company Parent: Wells Fargo & Co.
SIC Code: 6021
CUSIP: 94974610

Initial Case Details

Legal Case Name In the Matter of Wells Fargo Clearing Services, LLC and Wells Fargo Advisors Financial Network, LLC
First Document Date 25-Aug-2023
Initial Filing Format Administrative Action
File Number 3-21580
Allegation Type Investment Advisers/Investment Companies

Violations Alleged

Other
• Sections 206(2), 206(4) Advisers Act; Rule 206(4)-7 Advisers Act

Resolutions

First Resolution Date 25-Aug-2023
Headline Total Penalty and Disgorgement $35,000,000

Related Documents:

34-98221 25-Aug-2023 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Section 15(b) of the Securities Exchange Act of 1934 and Sections 203(e) and 203(k) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On August 25, 2023, the SEC instituted settled administrative and cease-and-desist proceedings against Wells Fargo Clearing Services and Wells Fargo Advisors Financial Network, stating: "From at least 2002 through December 2022, Wells Fargo and its predecessor firms overcharged approximately 10,945 accounts of advisory clients for more than $26.8 million in advisory fees . . . Wells Fargo and its predecessor firms failed to adopt and implement written compliance policies and procedures reasonably designed to prevent this overbilling. As a result of the above, Wells Fargo overcharged certain clients who opened accounts prior to 2014 for advisory fees for several years, through the end of December 2022."
2023-159 25-Aug-2023 Press Release--Administrative Proceeding
Wells Fargo Settles with SEC for Charging Excessive Advisory Fees
On August 25, 2023, the SEC stated that: "[It] charged Wells Fargo Clearing Services LLC and Wells Fargo Advisors Financial Network LLC (collectively, Wells Fargo) for overcharging more than 10,900 investment advisory accounts more than $26.8 million in advisory fees. Wells Fargo agreed to pay a $35 million civil penalty to settle the SEC’s charges."

Other Defendants in Action:

Wells Fargo Advisors Financial Network, LLC