The Securities and Exchange Commission (SEC) announced on Friday that Wells Fargo has agreed to pay a $35 million civil penalty to settle charges brought by the U.S. These charges revolved around the company’s overcharging advisory fees.
Charges have been filed by the SEC against Wells Fargo (NYSE:WFC) Clearing Services LLC and Wells Fargo Advisors Financial Network LLC. These charges pertain to overcharging over $26.8 million in advisory fees from more than 10,900 investment advisory accounts.
According to the SEC’s allegations, Wells Fargo and its preceding companies are accused of excessively billing specific clients who initiated accounts before 2014 for advisory fees until the conclusion of December 2022.
Wells Fargo settled without admitting or denying the charges, the SEC said in a statement. According to the statement, Wells Fargo paid affected account holders about $40 million, including interest, to reimburse them for the overcharging.
Wells said it was pleased to resolve the matter.
“The process that caused this issue was corrected nearly a decade ago. And, as noted in the settlement documents, Wells Fargo Advisors conducted a thorough review of accounts and has fully reimbursed affected customers,” it said.