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(Reuters) – Wells Fargo & Co (WFC.N) will pay more than $ 5.1 million to settle US securities and the Exchange Commission has improperly pushed retail clients to actively negotiate complex investments to generate higher fees.
The SEC said Monday that the payment includes a civil fine of $ 4 million, plus the return of earnings and ill-gotten interest, on the misconduct of brokerage Wells Fargo Advisors in its sale of so-called investments of market.
Wells Fargo was accused of reducing investor returns by encouraging clients to actively trade investments, even though they were expected to be held to maturity, despite an internal policy prohibiting "trades". short term "and" reversals ".
The San Francisco-based bank did not admit or deny the wrongdoing, but took steps to deal with the sales practices that took place from January 2009 to June 2013, the SEC said.
Wells Fargo said in a statement that he had made changes to the SEC's fee policies and management and that he was committed to helping clients achieve their goals. 39; investment.
Wells Fargo has been in the grip of scandals for nearly two years on how it treats its customers, including selling them products they do not need to meet their internal sales goals.
He reorganized management and tried to regain confidence, including through an advertising campaign saying that Wells Fargo was created in 1852 and "reestablished" in 2018.
Market-linked investments are fixed-term products whose interest rate is determined by the performance of a particular asset or market measure, such as market indices and equity indexes. raw materials.
Report by Jonathan Stempel and Imani Moise in New York; Editing by Bill Trott and Richard Chang
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