SEC has been fined 178,064 by Wells Fargo ( the US Securities and Exchange Commission ) over encouraging the active trading of market-linked investments (MLIs) between one to five years . The SEC claimed Wells Fargo recommended to clients that they sell the products before their maturity date and then invest the funds in new MLIs, thereby generating brokerage fees and diminishing investors' returns. In addition to the fine the firm will be required to return $ 930,377 from the trades, plus interest of $ 178,064 . ‘It is important that brokers do their homework before they recommend that their retail customers buy or sell complex structured products,’ said SEC enforcement division complex financial instruments unit chief Daniel Michael in a statement. Wells Fargo neither admitted nor denied the SEC 's conclusions as part of the settlement.
SEC has been fined 178,064 by Wells Fargo ( the US Securities and Exchange Commission ) over encouraging the active trading of market-linked investments (MLIs) between one to five years . The SEC claimed Wells Fargo recommended to clients that they sell the products before their maturity date and then invest the funds in new MLIs, thereby generating brokerage fees and diminishing investors' returns. In addition to the fine the firm will be required to return $ 930,377 from the trades, plus interest of $ 178,064 . Wells Fargo neither admitted nor denied the SEC 's conclusions as part of the settlement.