The broker-dealers of Wells Fargo and Company (NYSE: WFC) and the Securities and Exchange Commission (SEC) reached an agreement to settle the charges involving its investment recommendation practice.
On Thursday, the Wells Fargo Clearing Se
Additionally, both broker-dealers agreed to cease and desist from committing or any future violations of federal securities laws.
SEC allegations against Well Fargo broker-dealers
The SEC filed a complaint alleging that Wells Fargo Clearing Services and Wells Fargo Advisors Financial Network failed to supervise its investment advisers and registered representatives who were recommending single-inverse ETFs to clients.
The federal securities regulator found that some Wells Fargo investment professionals did not fully understand the risk of losses associated with single-inverse ETFs when held over a long period.
