Wells Fargo to pay $5.1 million settlement over brokerage misconduct charge

Wells Fargo will pay more than $5.1 million to settle charges that Wells Fargo Advisors, its St. Louis-based brokerage arm, pushed clients to actively trade complex investments in an effort to generate higher fees.

The Securities and Exchange Commission said the payout includes $4 million in fines, plus the return of ill-gotten gains.

The brokerage firm was accused of encouraging customers to actively trade so-called market-linked investments, despite the fact that those investments were intended to be held to maturity.

San Francisco-based Wells Fargo, the parent company behind Wells Fargo Advisors, did not admit or deny wrongdoing, but it has made efforts to address sales practices it had in place between early 2009 and the middle of 2013.

Read more: St. Louis Post-Dispatch


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