Already reeling from last week’s $3 billion penalty related to its fake accounts scandal, Wells Fargo took another hit Thursday: a $35 million settlement with the Securities and Exchange Commission for a failure to oversee advisors who recommended high-risk “single-inverse ETF investments” to risk-averse retail investors, and for lacking adequate compliance policies and procedures around those recommendations.
The $35 million will be distributed to harmed investors, according to a statement from the SEC announcing the penalty.
