Editor’s note: On March 1, CEO Tim Sloan sent the following companywide message.
On Thursday, March 1, Wells Fargo filed its annual report on Form 10-K with the Securities and Exchange Commission. This required filing provides a comprehensive summary of our 2017 financial performance, including the solid results we generated last year.
The Form 10-K also provides information on Wells Fargo’s efforts to rebuild trust. This is because transparency with all of our stakeholders is crucial, even when all of the information or the final outcome of a matter may not yet be known. So today’s filing provides an update on issues that were previously disclosed — such as our ongoing work to remediate customers who may have been financially harmed by issues related to automobile collateral protection insurance policies — and also provides information about certain new matters, all in the spirit of our commitment to transparency.
One matter in the Form 10-K involves a review of policies, practices, and procedures in our foreign exchange business. Two other matters relate to our Wealth and Investment Management business. Specifically, the Form 10-K notes that the board of directors is reviewing certain activities within WIM — in response to inquiries from federal government agencies — to assess whether there have been inappropriate referrals or recommendations, including with respect to rollovers for 401(k) plan participants, certain alternative investments, or referrals of brokerage customers to the company’s investment and fiduciary services business. This review is in its preliminary stages. The Form 10-K also references a review we are conducting related to fee calculations within certain fiduciary and custody accounts. As part of this review, we have determined that there have been instances of incorrect fees being applied to certain assets and accounts, resulting in customer overcharges. It is important to note that we have started work to fix this issue, and we will make things right for any customer that may have been impacted.
You’ve heard me say in recent months that, as part of our overall transformation work, Wells Fargo is committed to a thorough review of many processes used at the company. When we discover a problem, we are moving to find the root cause and fix it so we can be confident we are doing all we can to build a better, stronger Wells Fargo. And as I said, transparency is key to that effort.
We are also being transparent in noting that Wells Fargo may be subject to further actions or orders by other federal regulators regarding our risk management policies and procedures. Although this may seem discouraging, let’s remember that we are making significant progress in our work to build a better Wells Fargo, and we recognize that more challenges and more hard work lie ahead. Rebuilding trust takes time, as does accomplishing our goals to become the best in customer service and advice, team member engagement, innovation, risk management, corporate citizenship, and long-term shareholder return.
Working together, and guided by our values, I am optimistic that we will succeed. Thank you.