Multistate investigation finds unreasonable commissions on equity transactions; affected investors will receive restitution and interest
WASHINGTON, D.C. – (October 15, 2026) – The North American Securities Administrators Association (NASAA) has announced a combined $4.4 million settlement with Wells Fargo Clearing Services, LLC, Wells Fargo Advisors Financial Network, LLC and Merrill Lynch following an investigation into the firms’ practices of charging unreasonable commissions to retail customers on small-dollar transactions.
The investigation, led by state securities regulators in Massachusetts and jointly investigated by regulators in Alabama, Iowa, Missouri, Montana, New Jersey, Texas, and Washington, found that Wells Fargo and Merrill Lynch charged unreasonable commissions on more than 256,000 equity transactions and trades nationwide over the past five years.
Affected customers in states participating in the settlement will receive restitution for the excessive commissions, plus interest. The two Wells Fargo entities and Merrill Lynch will also be required to pay administrative fines and costs associated with the investigation. The firms must certify that they have changed their policies and enhanced their procedures to ensure that all commissions charged are fair and reasonable.
“This settlement reinforces the responsibility of financial firms to review their practices and ensure customers are treated fairly. I commend the state regulators involved for their thorough work in bringing this matter to resolution,” said Elizabeth Bowling, NASAA President.
The settlements announced today are the latest in a series of actions taken by state securities regulators to address concerns involving the charging of excessive fees on small-dollar transactions. On June 9, 2025, the North American Securities Administrators Association (NASAA) announced a $9.3 million settlement with Edward Jones, TD Ameritrade, LPL Financial, RBC Capital Markets and Stifel, arising from similar allegations.
In 2023, NASAA announced a $13 million settlement with Raymond James & Associates, Inc. and Raymond James Financial Services, Inc. resulting from an investigation into allegations involving the company’s practices of charging unreasonable commissions to retail customers on small dollar transactions.
The two Wells Fargo entities application of minimum commissions resulted in nearly $3.9 million in unreasonable commissions across approximately 228,243 transactions from September 30, 2020, through October 1, 2025.
Similarly, Merrill Lynch’s application of minimum commissions resulted in nearly $549,000 in unreasonable commissions over the same period.
– NASAA–
About NASAA:
Organized in 1919, the North American Securities Administrators Association (NASAA) is the oldest international organization devoted to investor protection. NASAA is a voluntary association whose membership consists of the securities regulators in the 50 states, the District of Columbia, Puerto Rico, Guam, the U.S. Virgin Islands, the 13 provincial and territorial securities regulators in Canada, and the securities regulator in México. For more information, visit www.nasaa.org.
For More Information:
Fred Baldassaro, Director of Communications
fbaldassaro@nasaa.org | 202-737-0900
Karen Grajales, Manager, Communications and Investor Outreach
kgrajales@nasaa.org | 202-737-0900
