The Securities and Exchange Commission is investigating the cash sweep options Wells Fargo provides to investment advisory clients at account opening, the bank disclosed in a regulatory filing on Tuesday.
Wells Fargo Advisors offers a sweep feature with three options for clients to earn a return on uninvested cash balances in their accounts, according to information listed on the bank’s website.
The cash sweep options include a standard bank deposit sweep, expanded bank deposit sweep and a money market fund sweep. Eligibility is based on the type of investment account and nature of account ownership, according to the bank.
