11.05.24

Wells Fargo Requiring Pre-Approval of Outside Stakes in FiNet Practices

by: Mason Braswell

Wells Fargo Advisors will require independent brokers at its financial network channel to seek approval in some cases before selling stakes in their practices, according to insiders. Wells told brokers that the firm has concerns that an outside investment, particularly those where they receive equity in the buyer, could constitute a private securities transaction or outside business activity, according to one of the sources. Brokers are required by the Financial Industry Regulatory Authority to receive approval before engaging in private transactions that could potentially lead to conflicts with customers.

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