10:49 AM EST, 01/17/2025 (MT Newswires) -- Wells Fargo's ( WFC ) clearing unit will pay a $28 million civil penalty, while its financial advisory subsidiary will pay $7 million, the US Securities and Exchange Commission said Friday.

The penalties settle charges that the firms failed to adopt adequate policies and procedures to prevent violations of the Advisers Act in their cash sweep programs, according to the federal regulatory agency.

The SEC also said that Bank of America's ( BAC ) Merrill Lynch unit agreed to a $25 million fine to resolve similar charges.

According to the SEC, the firms failed to consider clients' interests when offering cash sweep program options, especially during periods of rising interest rates. They also did not provide proper guidance to financial advisors on managing client cash in advisory accounts.

Neither Wells Fargo ( WFC ) units nor Merrill Lynch admitted or denied the charges, the SEC said.

In a statement to MT Newswires, a Wells Fargo ( WFC ) spokesperson said the agreement resolves this industry matter and that the issues outlined in the settlement have already been successfully addressed.

Bank of America ( BAC ) and Merrill Lynch did not immediately respond to a request from MT Newswires on Friday seeking comment

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