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Wells Fargo Wealth Management Division Faces SEC Investigation on Sales Practices

By George C. Miller, Esq. of Shustak Reynolds & Partners, P.C. posted on Monday, March 5, 2018.

George C. Miller

George C. Miller


Location: San Diego, California
Phone: (619) 696-9500 (Ext. 105)
Direct: (619) 501-8270
Email[email protected]

George C. Miller, Esq.
619.696.9500 ext. 105
[email protected]

Wells Fargo & Co. disclosed in a recent regulatory filing that its Wealth Management division, which includes FINRA member firm Wells Fargo Clearing Services, LLC (formerly Wells Fargo Advisors, LLC), is the subject of an SEC investigation to determine whether the firm accepted improper client referrals in violation of securities laws.  As part of the review, Wells Fargo disclosed it is assessing whether there were “inappropriate referrals or recommendations, including with respect to rollovers for 401(k) plan participants; certain alternative investments, or referrals of brokerage customers to the company’s investment and fiduciary-services business.”

 Still reeling from the 2016 phony account scandal and resulting record-breaking sanctions, this marks the first public indication that the bank’s wealth management division may have engaged in similar misconduct.  Already impacted by “bad press” related to the bank’s scandal, Wells Fargo’s financial advisors and wealth managers now face another obstacle and will, no doubt, have to field difficult questions from clients about yet another potential scandal at the firm. 

Shustak Reynolds & Partners, P.C. focuses its practice on securities and financial services law and complex business disputes. We represent many broker-dealers, registered representatives, investment advisors, investors and businesses. For more information, or if you or your company require counsel in these areas, contact us today for a confidential, complimentary consultation.

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