Wells Fargo fined for variable annuity actions

[Mr._Graybeard]

I saw this on Yahoo Finance this morning, from Reuters:

Wells Fargo & Co <WFC.N> agreed to pay $2.12 million in fines and restitution to settle U.S. regulatory charges its brokers failed to properly account for the costs of switching customers who owned variable annuities to new investments.
...FINRA said the cost of switching could more than offset the higher returns available on the new investments, leaving customers with less income than if they had stayed put.
It said it identified at least 101 potentially unsuitable switches, including a customer who incurred $14,037 in fees and charges when surrendering a $180,500 annuity.

https://finance.yahoo.com/news/wells-fargo-fined-violations-related-145111175.html

 

[jazz4cash]

The way I read this, they solicit a client with an annuity from an outside firm, convince them to surrender annuity without clearly identifying surrender charges and fees. The settlement is a slap on the wrist IMO:

includes $1.45 million in restitution and $675,000 in civil fines.