Today, millions of people rely on Wells Fargo for not just everyday banking, but also for investment matters.
Generally, investment advisory accounts come with services that help the accountholder ascertain the most strategic means of going about different investments. Naturally, the advice given to each accountholder will vary depending upon a number of different factors.
Though in the case of Wells Fargo, the financial services company is hot water amid stunning allegations from the Securities and Exchange Commission (SEC).
According to the SEC, Wells Fargo knowingly overcharged thousands of the aforementioned accounts to the tune of a collective $27 million.
Here are the facts
While various financial advisers with Wells Fargo had the responsibility of lowering typical advisory fees linked to various accountholders, these advisers went in a different direction. Instead, they opted against including the reduced advisory costs into Wells Fargo’s billings program.
This is what adversely impacted nearly 11,000 investment advisory accountholders who maintained relationships with Wells Fargo predating 2014 though the end of last year. Following the SEC bringing this to light, Wells Fargo has since agreed to a settlement of $35 million.
