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Wells Fargo To Pay $35M To End SEC’s Supervision Claims

Tiomkin Law Offices of Elliott Tiomkin > Legal News  > Wells Fargo To Pay $35M To End SEC’s Supervision Claims

Wells Fargo To Pay $35M To End SEC’s Supervision Claims

Law360 (February 27, 2020, 8:29 PM EST) — Two Wells Fargo entities agreed on Thursday to shell out $35 million to resolve U.S. Securities and Exchange Commission claims that they were lax in their supervision of investment advisers who irresponsibly recommended certain non-traditional exchange traded funds to unsuspecting investors.

Wells Fargo Clearing Services LLC and Wells Fargo Advisors Financial Network LLC failed to protect customers who were advised to purchase single-inverse ETFs despite being ill-suited to such risky investments, the SEC said in an administrative order.

Inverse ETFs allow investors to earn money by betting that the market will decline and, according to the regulator, should generally not be…

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