SAN FRANCISCO - To satisfy provisions in the financial modernization law, Wells Fargo & Co. has created a unit that will manage its $66 billion fund family.
Wells Fargo Funds Management LLC is to begin administering the bank's funds on March 1. It will handle accounting, monitor communications with shareholders, and organize fund board meetings.
Wells Fargo spokeswoman Leigh Chase said in an interview Friday that it started the operation because the Gramm-Leach-Bliley Act requires banks to provide investment advisory services for funds in a separate unit registered as an investment advisor with the Securities and Exchange Commission.
Ms. Chase said banks have until May 12 to comply with the legislation; Wells wanted to give itself two months to make sure everything was in place, she said.
Michael Hogan, president of Wells Fargo Funds, will run Wells Fargo Funds Management.