- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By Aaron Nicodemus2025-01-21T12:51:00
Wells Fargo and Merrill Lynch will pay $35 million and $25 million, respectively, to settle allegations by the Securities and Exchange Commission (SEC) that their handling of investment accounts’ cash sweep programs violated federal law.
Wells Fargo Clearing Services, Wells Fargo Advisors, and Merrill Lynch offered only one type of bank deposit sweep programs that was not in the best interest of some clients. The cash sweep programs set interest rates that failed to rise along with rising interest rates, a gap that at times grew to four percent, the SEC said in a press release Friday.
The firms failed to adopt reasonably designed policies and procedures that considered the best interests of clients during periods of rising interest rates, and regarding the duties of financial advisers to manage client cash in advisory accounts, the SEC said.
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2025-05-08T21:43:00Z By Aaron Nicodemus
A decision by the Securities and Exchange Commission to close an investigation into the cash sweep program at Morgan Stanley may affect decision-making at other financial institutions under similar scrutiny.
2023-11-01T16:26:00Z By Aaron Nicodemus
Wells Fargo disclosed it is under investigation by the Securities and Exchange Commission regarding cash sweep options it provides to new investment advisory clients.
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Investment adviser AssetMark agreed to pay more than $18 million to settle allegations by the Securities and Exchange Commission regarding undisclosed conflicts of interest involving its affiliate’s cash sweep program and its revenue-sharing arrangements with third parties.
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After dismissing its lawsuit against the crypto exchange Coinbase in March, a second investigation into the exchange by the Securities and Exchange Commission has surfaced, according to a report from the New York Times. This comes as a bit of a surprise after the Trump administration has been scaling down ...
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As the Consumer Financial Protection Bureau steps back from its core mission of protecting American consumers, states like New York and Pennsylvania are stepping up to fill the regulatory void.
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