{"id":42897,"date":"2020-03-02T08:57:30","date_gmt":"2020-03-02T13:57:30","guid":{"rendered":"https:\/\/cablemanpro.com\/wallstreetpr\/?p=42897"},"modified":"2020-03-02T01:01:32","modified_gmt":"2020-03-02T06:01:32","slug":"sec-fines-wells-fargo-co-nysewfc-35-million-to-settle-probe-on-improperly-recommended-etfs","status":"publish","type":"post","link":"https:\/\/cablemanpro.com\/wallstreetpr\/sec-fines-wells-fargo-co-nysewfc-35-million-to-settle-probe-on-improperly-recommended-etfs-42897","title":{"rendered":"SEC Fines Wells Fargo &#038; Co (NYSE:WFC) $35 million To Settle Probe On Improperly Recommended ETFs"},"content":{"rendered":"<p>The US Securities and Exchange Commission has ordered <strong>Wells Fargo &amp; Co (NYSE:WFC)<\/strong> to <a href=\"https:\/\/www.washingtonpost.com\/business\/2020\/02\/27\/wells-fargo-fined-35-million-giving-improper-investment-advice\/\" target=\"_blank\" rel=\"noopener noreferrer\">pay a $35 million fine<\/a> in a settlement regarding allegations that inappropriately recommended the risky investment to retirees and senior citizens.<\/p>\n<p><strong>Wells Fargo fined for selling inappropriate investments to retirees <\/strong><\/p>\n<p>According to the SEC, the Wells Fargo Advisors Financial Network and Wells Fargo Clearing Services failed to supervise investment advisers that recommended high-risk ETFs sufficiently. The SEC filing indicates that the company&#8217;s advisers recommended conservative and moderate risk investments to clients, including retirees and senior citizens. Some of the dubbed clients had little or no investment experience.<\/p>\n<p>The penalty comes days after the company <a href=\"https:\/\/www.marketwatch.com\/story\/wells-fargo-will-settle-regulatory-investigation-of-etfs-for-35-million-2020-02-27\" target=\"_blank\" rel=\"noopener noreferrer\">agreed to a $3 billion settlement<\/a> with the Department of Justice and the regulator regarding criminal charges of the company\u2019s fake accounts scandal. The company has not admitted or denied wrongdoing regarding its role in the deception of clients.<\/p>\n<p>The SEC indicated that the $35 million will go to the people who received the investment advice and suffered losses. A Company spokeswoman indicated that the company will not be selling &#8220;single-inverse ETFs&#8221; anymore in the &#8220;full-service brokerage.&#8221; However, clients who still want to purchase the ETFs can do so from other providers.<\/p>\n<p><strong>Wells Fargo warned in 2009 about the single inverse ETFs<\/strong><\/p>\n<p>The Financial Industry Regulatory Authority sanctioned Wells Fargo in 2009 for its sales of practices involving the ETFs. However, the company continued with the conduct until last year. The SEC indicated that the company&#8217;s single-inverse ETFs policies and procedures were not designed reasonably to detect or prevent improper recommendation of the complex products.<\/p>\n<p>The sanctions come following a notice from the regulator to the company regarding the sales practices of the risky ETFs. In 2009 FINRA indicated that single inverse ETFs were <a href=\"https:\/\/www.reuters.com\/article\/us-wells-fargo-sec\/sec-orders-wells-fargo-pay-35-million-for-recommendations-of-high-risk-products-idUSKCN20L35B\" target=\"_blank\" rel=\"noopener noreferrer\">not appropriate for retail customers<\/a> planning top hold them for over a single trading session.<\/p>\n<p>SEC enforcement division\u2019s associate director Antonia Chion stated that companies should maintain compliance and supervisory roles on the products they offer customers to ensure that they are suitable.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The US Securities and Exchange Commission has ordered Wells Fargo &amp; Co (NYSE:WFC) to pay a $35 million fine in a settlement regarding allegations that [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":42898,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[1012,3415,1866],"stock_ticker":[14251],"class_list":["post-42897","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-nysewfc","tag-wells-fargo-co","tag-wells-fargo-co-nysewfc","stock_ticker-wfc","entry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>SEC Fines Wells Fargo &amp; 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