Wells Fargo, the trustee of the Chattanooga Fire & Police Pension Fund, took $47,000 in fee rebates that should have been passed on to the pension fund, as first reported by The Wall Street Journal. The fund has 1,600 members and $215 million.
As trustee, under a system known as revenue sharing, Wells Fargo received the fee rebates from third-party fund companies because of investments it held for clients. The bank was then expected to return the rebates to those clients.
In a statement, Wells Fargo acknowledged that it “made an error in setting up the revenue sharing” and “the revenue share rebates did not occur as intended.”
The bank, which apologized for the mistake, recently returned $15,000 to the fund, which is the amount it said was owed.