Wells Fargo to pay US$35 million penalty over excessive fees: SEC

WELLS Fargo has agreed to pay a US$35 million civil penalty to settle US charges that the company overcharged advisory fees, the Securities and Exchange Commission (SEC) said on Friday (Aug 25).

The SEC said it charged Wells Fargo Clearing Services and Wells Fargo Advisors Financial Network for overcharging more than 10,900 investment advisory accounts more than US$26.8 million in advisory fees.

The SEC alleged that Wells Fargo and its predecessor firms overcharged certain clients who opened accounts prior to 2014 for advisory fees through the end of December 2022.

Wells Fargo settled without admitting or denying the charges, the SEC said in a statement. Wells Fargo paid affected account holders about US$40 million, including interest, to reimburse them for the overcharging, according to the statement.

The company did not immediately respond to a request for comment. REUTERS