Wells Fargo Advisors Reorganizes to Ease Bureaucracy
Wells Fargo continues reorganizing its wealth management business, most recently reducing the number of regions its Wells Fargo Advisors representatives work in from 21 to 14 in a move it says will cut down on red tape, according to news reports.
The restructuring, announced in a memo seen by InvestmentNews, affects around 12,000 advisors in Wells Fargo’s employee channel, the publication writes.
The firm has also appointed Rich Getzoff, head of advisor-led business, East, to head the 14 regions, according to InvestmentNews.
"I believe this integrated model will help eliminate layers in the decision-making process, enable decisions to be made faster, and provide us with one way of doing things across our branch network," John Alexander, head of advisor-led business, West, writes in the memo cited by the publication.
A Wells Fargo spokesperson declined comment to InvestmentNews on any potential manager layoffs that might accompany the reorganization.
Wells Fargo is still reeling from the 2016 bogus accounts scandal in its banking unit, and its wealth management division’s sales practices are under investigation by the SEC and the Justice Department.
The unit has shed hundreds of advisors since the revelations about the fake accounts at the bank, and Wells Fargo has made several moves to restructure the wealth management business over the past few months.
In April, the company signed an agreement to sell its institutional retirement and trust business for $1.2 billion to Principal Financial Group, a life insurance and financial services group, as reported.
In March, the company announced that Tim Traudt would become interim head of its wealth management unit, replacing Jay Welker, who announced his retirement in November.