Wells Fargo is closing its international wealth management business to focus on its US domestic operation.
The firm said that it would be closing all its international advisory client accounts by September this year as part of an effort to ‘simplify’ its advisory business, according to an internal memo seen by Citywire Americas.
In the memo sent on Thursday morning to Wells Fargo Advisors and wealth management executives, Jim Hays, the head of Wells Fargo Advisors and the Wealth & Investment Management Client Relationship group, said that the firm is shifting its advisory business to focus on clients who reside primarily in the US.
‘What this means in practical terms is that effective Tuesday, January 19, we will no longer open new brokerage, Wells Fargo Private Bank, or Abbot Downing accounts for individuals who do not meet our new residency requirements,’ wrote Hays.
According to sources familiar with the matter, the firm’s advisors will have until September this year to close their international client accounts.
The decision is set to impact the group’s near 330 international financial advisors that are based in its offices Miami, New York, Texas and California.
In total, the business ran close to $40bn in assets with about 80% coming from Latin American clients, according to the latest available data.
‘We know this is an especially difficult decision for our international-focused financial advisors and their clients, and also for other advisors with international clients in their books,’ Hays said in the memo.
In an official statement sent to Citywire Americas, a Wells Fargo spokesperson