Defendant Name:
Wells Fargo Clearing Services, LLC
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
Wells Fargo & Co.
SIC Code:
6021
CUSIP:
94974610
Document Reference:
34-88295
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 Section 15(b)(4) 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
Document Date
27-Feb-2020
Document Format
Administrative Proceeding
Allegation Type
Investment Advisers/Investment Companies
Document Summary
On February 27, 2020, the SEC instituted settled administrative and cease-and-desist proceedings against Wells Fargo Clearing Services, LLC, and Wells Fargo Advisors Financial Network, LLC. The SEC stated: "From April 2012 through September 2019, Wells Fargo recommended that many retail investment advisory clients and brokerage customers (collectively, “clients”) buy and hold single-inverse exchange-traded funds (“single-inverse ETFs”) without having adequate compliance policies and procedures and without providing financial advisors proper training and supervision of single-inverse ETFs. As a result, certain investment adviser representatives and registered representatives (referred to by Wells Fargo as “financial advisors”) made unsuitable recommendations to certain clients."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Censured
Fair Funds
Monetary Penalties:
Civil Penalty
Individual:
Shared:
$35,000,000.00
Shared with: Wells Fargo Advisors Financial Network, LLC
Total Penalty
Individual:
Shared:
$35,000,000.00
Shared with: Wells Fargo Advisors Financial Network, LLC
Other Defendants in Action:
