Wells Fargo to pay largest fine in SEC recordkeeping enforcement action

Wells Fargo & Co. (WFC) will pay $125 million out of a total of $289 million in fines by the Securities and Exchange Commission against 10 firms "for widespread and longstanding failures by the firms and their employees to maintain and preserve electronic communications," the SEC said. The firms have started to carry out improvements to their compliance policies and procedures to address the violations, the SEC said. Wells Fargo Securities LLC together with Wells Fargo Clearing Services, LLC and Wells Fargo Advisors Financial Network LLC agreed to pay a $125 million. A spokesperson for Wells Fargo said in an email to MarketWatch that the fine was consistent with peers that agreed in September to pay fines of $125 million as part of an industry-wide review. BNP Paribas Securities Corp. and SG Americas Securities, LLC have each agreed to pay penalties of $35 million. BMO Capital Markets Corp. (BMO.T) and Mizuho Securities USA LLC (8411.TO) have each agreed to pay penalties of $25 million. Houlihan Lokey Capital Inc. (HLI) agreed to pay a $15 million. Moelis & Company LLC (MC) and Wedbush Securities Inc. agreed to pay $10 million each. SMBC Nikko Securities America Inc. has agreed to pay a $9 million penalty.

-Steve Gelsi

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08-08-23 1037ET

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