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

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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