The Securities and Exchange Commission (SEC) is looking into Wells Fargo’s (WFC.N) cash sweep options for investment advice customers, the bank said in a regulatory statement.
These customers can receive a return on their unused cash balances thanks to the sweep feature. Uninvested monies may be put into money market funds or interest-bearing accounts using one of the bank’s three sweep alternatives.
The lender has been working to improve its compliance and repair the damage a previous controversy over its sales tactics caused. However, in the wake of investigations into other topics, its activities have occasionally faced fresh criticism.
One such instance was a hiring policy that had the San Francisco-based bank interview candidates from a “diverse” pool for certain positions, with the requirement that half of the candidates be non-white or female.
The New York Times revealed last year that the bank had held “fake” interviews for positions that had already been filled, which brought attention to the strategy.
Wells Fargo stated in a document dated Tuesday that the Justice Department has concluded its inquiry into the company’s diversity-related employment practices without taking any further action.
The bank said that the SEC is still keeping a close eye on the matter. Around a dozen consent agreements with regulators and a remarkable asset cap imposed by the Federal Reserve are still in effect, binding the lender.
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