Wells Fargo is withdrawing from international wealth management business in order to focus its efforts on serving wealthy investors in the US.
The move will impact Wells Fargo Advisors, Wells Fargo Private Bank, as well as Abbot Downing from 19th of this month.
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However, it will not impact active duty US military and US government employees residing overseas.
Confirming the move, Wells Fargo Advisors spokeswoman Shea Leordeanu stated: “Wells Fargo is focused on meeting our regulatory requirements, managing risk, and simplifying operations across the company.
“For Wells Fargo Advisors, Wells Fargo Private Bank, and Abbot Downing, our core business focus is serving clients who primarily reside in the U.S. As such, we have decided to exit the international segment of our business.”
Leordeanu further said that the process to withdraw from its international business is expected to take at least nine months.
She noted: “Because this segment requires different processes, approaches and infrastructure maintenance, we have determined we will simplify the business.”
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By GlobalDataLeordeanu added that Wells Fargo will go forward with the move in a way consistent with regulatory expectations.
With this move, the bank follows the footsteps of financial firms including RBC and Merill Lynch that have largely scaled backed their overseas presence.
In October last year, a report revealed that Wells Fargo is looking to sell its asset management business.
The move is part of Wells Fargo CEO Charles Scharf’s strategy to revive the group, which was embroiled in a major sales practices scandal.
Recently, a report said that Ameriprise Financial, CI Financial as well as private equity firms GTCR and Reverence Capital Partners are contemplating second-round bids for Wells Fargo’s asset management business.
