Wells Fargo and Merrill Lynch settle excessive commissions probe
Action Required: Review internal fee schedules and automated trading algorithms to ensure commission structures align with regulatory expectations for small-dollar trades.
Wells Fargo and Merrill Lynch have settled a $4.4 million probe with state regulators regarding excessive commissions charged on small-dollar retail equity trades. This enforcement action highlights the ongoing regulatory scrutiny on fee structures and trade execution costs, which is particularly relevant as firms automate trading workflows.
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