What is a Wells Notice?
How Does a Wells Notice Work?
Specifically, a Wells Notice informs a person or institution that a regulator intends to recommend that the Justice Department or other authority begin enforcement proceedings against the person or institution. A Wells Notice must advise the receiver of the nature of the investigation, though they don't always go into great detail.
The prospective defendant then has a chance to respond, typically in writing, to the entity sending the Wells Notice. This is called a Wells Submission.
Regulators typically provide Wells Notices as a courtesy; they generally aren't required by law.
Why Does a Wells Notice Matter?
Wells Notices are never good news, because they suggest that a regulator suspects wrongdoing. However, they are usually not surprises. By the time the prospective defendant gets a Wells Notice, a preliminary investigation usually has already occurred.
It is important tothat a Wells Notice does not the prospective defendant is already guilty. The investigation out that determination.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.