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March 01, 2018 at 03:56 PM
Wells Fargo says it is looking into problematic fee calculations in its wealth management unit. It is also reviewing whether some referrals and recommendations affecting 401(k) rollovers were “inappropriate,” according to Thursday’s 10-K filing with the Securities & Exchange Commission.
The issue, first reported by the Wall Street Journal, concerns overcharges and incorrect fees charged for some fiduciary and custody accounts, according to the firm’s latest 10-K report filed with the SEC on Thursday.
As part of its overall review of its operations, being made at the request of the federal government, Wells Fargo is also looking into “whether there have been inappropriate referrals or recommendations, including with respect to rollovers for 401(k) plan participants, certain alternative investments, or referrals of brokerage customers to the company’s investment and fiduciary services business.”
The Department of Justice reportedly is involved in the investigation, according the WSJ.
The news comes one month after the Federal Reserve barred the bank from growing. The developments also are tied to other issues that have plagued the bank for the past 18 months or so concerning fraudulent sales practices within its retail bank.
The bank has about 14,500 financial advisors in its wealth unit.
“Just when you think it is over, it is not — there is always more to the story,” said recruiter Danny Sarch after the Fed’s move was announced.
