SEC files settlement charges against Wells Fargo and Merrill Lynch, imposing a civil fine of $60 million

BlockBeats News: On January 17th, according to the official website of the SEC, the SEC (US Securities and Exchange Commission) filed settlement charges against two consulting firms, Wells Fargo and Merrill Lynch, for their violations in cash clearing plans. The two companies agreed to pay a total of $60 million in civil fines. The reason for filing a settlement claim is that it failed to implement a reasonably designed written policy and procedure to prevent violations of the Consultant Law and its rules related to the company's cash liquidation plan. According to SEC orders, Wells Fargo Advisors and Merrill Lynch offer the Bank Deposit Settlement Plan (BDSP) as the only cash settlement option for most consulting clients, and have gained significant economic benefits from consulting clients' cash in the BDSP. The two companies and their subsidiaries have set the interest rates provided in BDSP, and during periods of interest rate increases, the yield difference between BDSP and other cash settlement alternatives can sometimes grow to nearly 4%.