Regulatory Enforcement

Wells Fargo fined $200M in latest SEC, CFTC off-channel comms sweep

By 2023-08-08T15:48:00

Wells Fargo sign

The Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) continued their crackdown on financial firms’ recordkeeping failures regarding employee use of off-channel communications for business with $555 million in total fines levied against nine institutions and their affiliates.

The penalties, announced Tuesday, mirror the agencies’ action last September, when they combined to fine nearly a dozen institutions more than $1.8 billion for widespread failures in monitoring, maintaining, and preserving electronic communications by employees. Of the latest group disciplined, Wells Fargo received the largest punishment in agreeing to pay $200 million total for admitted failures at several of its broker-dealer affiliates—an amount similar to fines the regulators have levied against other banks of its size.

“We’re pleased to resolve this matter,” a Wells Fargo spokesperson said in an emailed statement.

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