BAD NEWS: Wells Fargo Advisors to Leave International Business
Posted on 01/13/2021
Wells Fargo made a strategic decision to not service clients outside the United States. Wells Fargo Advisors has failed to make a big mark in the international wealth management space. Starting January 19, 2021, Wells Fargo Advisors will no longer allow advisors to open new brokerage, Wells Fargo Private Bank or Abbot Downing accounts for residents outside the United States. The wealth management unit will initiate a “methodical exit process” for existing international accounts in January 2021, which will take nine months to complete.
Wells Fargo Advisors will continue to serve accounts of active duty U.S. military and U.S. government employees stationed abroad. Wells Fargo’s wealth management and investment management unit had revenue of US$ 11,169,000,000 from September 30, 2020 (9 months ended) vs. US$ 13,270,000,000 September 30, 2019 (9 months ended).
More North American banks are exiting international wealth management. In 2014, the Royal bank of Canada (RBC) closed its wealth management operations in the Caribbean and closed some of its international advisory and private banking groups in the U.S. and Canada.