But upon further investigation Wells Fargo discovered that 145 advisory accounts had been overbilled because reduced advisory fees contained in “shelf” agreements had not been entered correctly into the account setup tool. Of those 145 accounts, 124 were opened at either AG Edwards or Wachovia prior to the close of the merger between Wells Fargo and Wachovia and were acquired by Wells Fargo at the end of 2008.

“Because Wells Fargo did not conduct any review or periodic testing of the legacy AG Edwards and Wachovia advisory agreements at the time of the merger and afterwards to determine whether account opening information, including the advisory fee rates, was accurate, Wells Fargo continued to overcharge these legacy Connecticut accounts until after it began in 2019 to identify discrepancies,” the SEC said. 

After it discovered and identified the overbilling in the Connecticut accounts, for which it issued reimbursement payments totaling approximately $433,622, with interest totaling approximately $268,876, the firm developed a process to review all of it5s 2.2 million advisory agreements nationwide.

“Through that process, Wells Fargo determined that an additional 10,800 accounts had also been overcharged for advisory fees nationwide as a result,” the SEC said.

“We’re pleased to resolve this matter,” Caroline Szyperski, a Wells Fargo spokesperson, said in a statement. “The process that caused this issue was corrected nearly a decade ago. And, as noted in the settlement documents, Wells Fargo Advisors conducted a thorough review of accounts and has fully reimbursed affected customers.”

Bloomberg News contributed to this story.