Wells Fargo’s wealth management units are shuttering the international segment of their business, the company told employees today.
“[W]e have decided to exit the international segment of our business. Because this segment requires different processes, approaches, and infrastructure maintenance, we have determined we will simplify the business,” the spokesperson writes.
As a result of that decision, the bank’s wealth management units — Wells Fargo Advisors, Wells Fargo Private Bank and Abbot Downing advisors — will cease managing money for customers based outside the U.S. However, there will be some exceptions, such as for advisors servicing accounts for active duty U.S. military and U.S. government employees who may be stationed abroad, the spokesperson added.
Some Wells Fargo FAs who had been warned about the decision were told the closure is scheduled for September 2021, according to a recruiter, who asked not to be identified by name.
Wells Fargo declined to say precisely what portion of their wealth management business overseas accounts comprise, but the segment “represents a small percentage of accounts and assets under management” across the wealth management units, the spokesperson writes.
FAs who decide to leave as a result of the shuttering may be able to receive forgiveness on upfront loans they received from the company and waivers on unmet vesting requirements for deferred compensation, according to the recruiter.
The company declined to describe specifically the assistance or accommodations it would provide advisors affected by the decision.
“We will work very directly with all affected advisors about their individual options,” the spokesperson writes. “We understand this is a difficult change for our international-focused advisors and this business will take many months to exit. We will work very directly with all affected advisors about their individual options. We will continue to focus on providing our clients excellent service during this transition and will proceed in a manner that is consistent with regulatory expectations.”
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