Originally published in Financial Planning
By Yvonne Kanner
We’ve all heard about Wells Fargo and its “duplicate accounts” scandal, in which employees created accounts without customers’ consent to meet sales goals.
But many, less headline-grabbing, bank management failures occur regularly.
In January, for instance, Morgan Stanley was fined $13 million for overbilling clients; a few weeks earlier the company paid a $7.5 million fine for alleged violations of a rule designed to ensure segregation of customer cash and securities in case a firm fails.
The same month, the SEC ordered Citigroup to pay $18.3 million for overcharging at least 60,000 of its investment advisory clients.
And the beat goes on.
Yvonne Kanner is President and COO of Fiduciary Network, which provides capital to registered investment advisors.