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Wells Fargo Advisors to Exit All International Business

Wells Fargo advisors volition no longer be able to service clients abroad, co-ordinate to a company memo.

Wells Fargo plans to finish catering to clients outside the U.Due south. in an effort to "simplify the business," said Jim Hays, caput of Wells Fargo Advisors and the wealth and investment management customer relationship group, in a memo to advisors obtained by WealthManagement.com.

"Within the WIM client relationship Group, we too want to focus on our core business organisation, which is serving clients who primarily reside in the U.s.a.," Hays wrote. "As such, we have decided to exit the international segment of our business. Because this segment requires different processes, approaches, and infrastructure maintenance, we have determined nosotros volition simplify the business organisation."

Starting Jan. xix, the firm will no longer permit advisors to open new brokerage, Wells Fargo Private Depository financial institution or Abbot Downing accounts for residents outside the United States. The business firm will also first a "methodical go out process" for existing international accounts this month, which volition take 9 months to consummate.

"We know this is an especially difficult decision for our international-focused financial advisors and their clients, and likewise for other advisors with international clients in their books," Hays wrote. "We will work very directly with all affected advisors almost their private options along with our expectations to eventually exit relationships in a way that is consistent with regulatory expectations and best serves the interests of our clients during this transition."

The firm will continue to serve accounts of agile duty U.S. war machine and U.S. government employees stationed abroad.

Wells Fargo is not the first to motion away from international business. In 2014, RBC shut downward its wealth direction operations in the Caribbean and closed some of its international advisory and individual banking groups in the U.South. and Canada.

Several years ago, Merrill Lynch limited the number of countries where advisors could exercise international business and instituted higher minimums for clients in sure countries. Three former Merrill advisors filed a form action lawsuit against the firm, claiming the new policies for international clients hurt their business organization.

"A lot of the big firms are moving away and making it more than difficult to work with clients overseas because at that place's a level of risk associated with it," said Barbara Herman, a senior vice president at Diamond Consultants. "You've got money laundering rules, all kinds of federal rules that you have to be mindful of. Then you lot also take rules in the local country—the client's local country—to deal with that can oftentimes arrive difficult to work with a client in another country. It can be fraught with challenges that create legal exposure as well every bit financial run a risk."