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Regulation and Compliance > Federal Regulation > SEC

Wells Fargo Advisors Names New Compliance Chief

By Janet Levaux

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Wells Fargo Advisors (WFC) said late Thursday that it had named Jim McHale chief compliance officer.

McHale, who most recently was head of brokerage compliance at E*Trade Financial, reports to Bob Mooney, chief compliance officer of Wells Fargo’s Wealth, Brokerage and Retirement. The unit includes nearly 15,190 financial advisors and about 3,850 bankers for clients with some $1.4 trillion in assets.

“Jim is an exceptional addition to our team,” said Mary Mack, president and head of Wells Fargo Advisors, in a statement. “He has the skills, perspective and leadership required to help WFA thrive in an increasingly complex and demanding regulatory environment.” 

McHale worked on an enterprise compliance program at E*Trade. Earlier, he was assistant general counsel for the Securities Industry and Financial Markets Association (SIFMA).

In the most recent quarter, Wells Fargo’s wealth unit reported net income of $514 million as of Dec. 31, down $36 million, or 7%, from third quarter of 2014, but up about 5% from $491 million in the year-ago period.

Revenue for the unit was $3.6 billion, up $94 million from the prior quarter and $209 million for Q4’13. The unit experienced “strong growth in asset-based fees and higher net interest income [which] were partially offset by lower gains on deferred compensation plan investments (offset in compensation expense) and lower brokerage transaction revenue,” the bank explained in a statement.

In October, the SEC said it was taking an enforcement action against a former Wells Fargo Advisors compliance officer for allegedly altering a document after the SEC started an investigation into a Wells Fargo broker’s trading of Burger King stock.

This news came after the SEC fined Wells Fargo Advisors $5 million in late September for failing “to maintain adequate controls” to prevent Da Silva Prado Neto from insider trading based on a customer’s nonpublic information. The SEC maintains that Da Silva Prado Neto illegally traded in Burger King stock for $175,000 in illicit profits.

— Check out Enforcement Roundup: Wells Fargo, JPMorgan Slammed Over Mortgage Kickbacks on ThinkAdvisor.

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