Wells Fargo wealth and investment management business will be merged with its private bank, Abbot Downing, the American lender said in a memo last week.
The news follows the announcement earlier this month that Jay Welker, president of Wells Fargo Private Bank, will be retiring in March. Welker, who is also head of wealth management, was the centre of a month-long internal investigation into alleged gender bias the division. The investigation concluded last week that there was ‘no gender bias’.
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A new job role will be created to manage the merged unit, which does not yet have a name. Wells Fargo has not announced who this will be but they will report to Jon Weiss, head of wealth and investment management.
The wealth unit has been under recent scrutiny following allegations that it sold investment products to clients that were not in their interest.
Earlier in the year, Wells Fargo Advisors, the brokerage unit of Wells Fargo, settled a fine of $4m with the US Securities and Exchange Commission (SEC) to resolve allegations of misconduct tied to sales of market-linked investments (MLIs) to retail investors between 2009 and 2013.
The wealth and investment management (WIM) arm of Wells Fargo posted a third quarter revenue for 2018 of $4.22bn, down 1% from the same period last year.
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