Defendant Name:
Wells Fargo Advisors Financial Network, LLC
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
Wells Fargo & Co.
SIC Code:
6021
CUSIP:
94974610
Document Reference:
IA-5199
Document Details
Legal Case Name
In the Matter of Wells Fargo Clearing Services, LLC and Wells Fargo Advisors Financial Network, LLC
Document Name
Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to 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
Document Date
11-Mar-2019
Document Format
Administrative Proceeding
Allegation Type
Investment Advisers/Investment Companies
Document Summary
On March 11, 2019, the SEC issued an order against Wells Fargo Clearing Services, LLC and Wells Fargo Advisors Financial Network, LLC, stating: "These proceedings arise out of breaches of fiduciary duty and inadequate disclosures by registered investment advisers Wells Fargo Clearing Services, LLC and Wells Fargo Advisors Financial Network, LLC in connection with mutual fund share class selection practices and the fees Respondents received pursuant to Rule 12b-1 under the Investment Company Act of 1940 ("12b-1 fees")."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Censured
Other Compliance Related Undertaking
"Respondents shall deposit the full amount of the disgorgement and prejudgment interest (the “Distribution Fund”), less monies already distributed to investors, into an escrow account [...] Respondents shall be responsible for administering the Distribution Fund"
Self Reporting to SEC
Monetary Penalties:
Disgorgement
Individual:
Shared:
$15,037,298.87
Shared with: Wells Fargo Clearing Services, LLC
Pre-Judgment Interest
Individual:
Shared:
$2,326,548.42
Shared with: Wells Fargo Clearing Services, LLC
Total Penalty
Individual:
Shared:
$17,363,847.29
Shared with: Wells Fargo Clearing Services, LLC
Other Defendants in Action:
