The SEC will distribute this money to harmed investors. But that's not all. Wells Fargo claims that it … Since the scandal broke Wells Fargo has paid over $1.7bn in fines, $575m of that as late as December. Your article was successfully shared with the contacts you provided. Propelling the Advisor-Client Journey with a Robust Client Portal. Now, however, Wells Fargo's wealth managers are coming under increasing scrutiny for the same sort of strong-armed sales tactics exhibited by its large … The Wells Fargo scandal is affecting financial advisors and wealth managers nationwide. Activist investors began filing shareholder resolutions with Wells Fargo on Thursday calling on the bank to split the roles of chairman and CEO, both held by Stumpf, in light of the recent scandal. the first step to deciding wich portfolio will generate optimal returns for you. The data provided in charts referring to IFA Index Portfolios is hypothetical back-tested performance and is not actual client performance. Wells Fargo’s fake-account scandal continues to haunt the big bank, exacerbating headaches caused by shrinking interest rates. WASHINGTON (Reuters) - A U.S. bank regulator has fined Wells Fargo's former general counsel, James Strother, $3.5 million for his role in the bank's wide-ranging sales scandal… individual and institutional accounts, including IRA, 401(k), 403(b), profit sharing, pensions, endowments and all other investment accounts. Wells Fargo pressured employees to cross-sell, offering customers with one type of product, such as checking or savings accounts, to also buy other types of products, such as credit cards and loans. In perhaps one of the most comprehensive accounts yet, Bethany McLean -- who helped break the Enron scandal and chronicled mortgage banking double-dealing during the Great Recession -- has joined veteran investigative journalist Ethan Wolff-Mann to dig into advisor practices at Wells Fargo. Shares of Wells Fargo have gained 3.8% over the past six months compared with 20.1% growth recorded by the industry it belongs to. Now, he "is pleased to put this matter behind him." “Wells Fargo has been transparent that we expect to reduce the size of our workforce through a combination of attrition, the elimination of open roles, and job displacements,” it explained. Investors claimed the bank knew about the fake account issue but failed to disclose it to investors, who considered it material. That means our advisors strive at all times to act in the best interests of our clients -- even if doing so goes against the best interests of IFA. Wells Fargo Advisors handles $1.4 trillion in client assets and is one of the country's leading financial services firms. The OCC also barred former CEO Stumpf from ever working at a bank again and ordered that he pay $17.5 million for his role in the scandal. Exclusive discounts on ALM and ThinkAdvisor events. ended the period with 12,908 financial advisors, down 815. The bank’s Wealth & Investment Management unit had a 64% drop in net income from last year to $463 million. Wells Fargo Advisors’ current headcount is down by 2,178 advisors, or 14%, from Sept. 30, 2016, As for whether or not some of the “displaced” advisors were employed by the bank as financial relationship advisors, as reported by, More Reasons to Rethink the 60/40 Portfolio, Schwab Launches 2 Custom-Built Variable Annuities: Portfolio Products, Sign Up for the Inside Wealth Management Newsletter, Sign Up for the Career Advantage Newsletter. An internal memo uncovered by the paper lays out a first phase that calls for a combining of brokerage services with parts of the bank's wealth management operations. Founded in 1999, IFA is a Registered Investment Adviser with the U.S. Securities and Exchange Commission that provides investment In its third-quarter financial report, Wells Fargo said it ended the period with 12,908 financial advisors, down 815, or 6%, from a year ago and 391, or 3%, from the prior quarter. advice to individuals, trusts, corporations, non-profits, and public and private institutions. As the needs of your clients and prospects change, make sure your technology can keep up. We help thousands of people a year and are ready to help you. Wells Fargo employees were incentivized to convince existing customers to open new accounts at the bank—to talk a checking account holder into opening a credit card, for example. The investment professionals tied to Wells Fargo Advisors, the company's retail brokerage division, have been accused of some not-so-customer-friendly practices of their own. Investors claimed the bank knew about the fake account issue but failed to disclose it to investors, who considered it material. The Office of the Comptroller of the Currency has slapped former Wells Fargo & Co. general counsel James Strother with a $3.5 million penalty for his alleged role in the bank’s phony checking and savings account scandal. globally-diversified and tax-managed investment strategies with a fiduciary standard of care. May 2018: $480 million to settle securities-fraud lawsuit. The Wells Fargo unit could fetch more than $3 billion, according to a person briefed on the matter, who said the bank began discussing a possible deal … The financial sector has been beaten down tremendously in 2020, and Wells Fargo has been hit harder than most. 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