Vermont Business Magazine The State of Vermont will receive $300,000 from Wells Fargo Advisors as the result of a recent investigation conducted by the Department of Financial Regulation. Commissioner Susan L Donegan announced today that Wells Fargo will pay an administrative penalty of $270,000 to the general fund, $15,000 to reimburse the department for the cost of the investigation and $15,000 to the department’s education and training fund. The investigation stemmed from a customer complaint alleging that a Wells Fargo investment advisor had made unsuitable recommendations regarding investment accounts and that the company’s representatives were not adequately trained or supervised. In addition to the $300,000 paid to DFR, the complainant will receive restitution for all fees and commissions charged.
The department found the company had violated some internal policies and procedures relating to investment strategies and has made changes to its written supervisory procedures.
Donegan said she was pleased with the cooperation Wells Fargo provided during the examination and satisfied with the actions the company has been taken to correct the erroneous procedures.
“Wells Fargo has made changes to several practices and implemented a number of corrective actions that will result in improved policies and procedures,” she said. “Those remedial measures include a continuing education and training programs for financial advisors and supervisory personnel who are involved in investing consumer funds, which will ensure that Vermonters’ accounts are more closely monitored.”
Wells Fargo is a Vermont licensed securities broker-dealer with an office in Burlington.
Source: DFR 6.28.2016