What are Principal at Risk Securities?

Principal at Risk Securities are investment products where the potential return is linked to an underlying asset or index. However, unlike traditional debt instruments, investors may lose a portion or all of their principal investment if the performance of the underlying asset or index does not meet certain thresholds.

What is the purpose of filing these Medium-Term Notes as an 8-K?

This 8-K filing is necessary to publicly disclose the details of these new debt securities being issued by Wells Fargo. It formally registers these financial instruments with the Securities and Exchange Commission (SEC) and provides investors with access to the terms and legal assurances associated with them.

What is the risk for investors in these specific notes?

The primary risk for investors in these notes is the potential loss of principal. The return and repayment of principal are dependent on the performance of the underlying indices (iShares® MSCI Emerging Markets ETF, S&P 500® Index, or an Equity Index Basket). Adverse movements in these indices could result in a loss of the initial investment amount.

Who is Faegre Baker Daniels LLP and why are they mentioned?

Faegre Baker Daniels LLP is a law firm providing legal services. Their opinion and consent are included in the filing to provide legal assurance regarding the structure, legality, and issuance of the Medium-Term Notes, which is a standard requirement for such financial product disclosures.

WELLS FARGO & COMPANY/MN 8-K SEC Disclosure

Summary

Wells Fargo & Company/MN (WFC) filed an 8-K report on November 6, 2018, primarily to disclose the issuance of three series of Medium-Term Notes, Series S, categorized as Principal at Risk Securities. These notes are linked to various investment indices: the iShares® MSCI Emerging Markets ETF, the S&P 500® Index, and a custom Equity Index Basket. The purpose of this filing is to provide the specific documentation for these notes and the legal opinion supporting their issuance, as required for their registration.

Key Highlights

1Disclosure of new debt issuance: Wells Fargo issued three distinct series of Medium-Term Notes, Series S.
2Structured products: The issued notes are 'Principal at Risk Securities,' meaning investors could lose principal if underlying indices perform poorly.
3Index-linked investments: The notes are tied to specific investment benchmarks: iShares® MSCI Emerging Markets ETF, S&P 500® Index, and an Equity Index Basket.
4Maturity dates vary: Notes have maturity dates of November 8, 2021, and November 6, 2023, indicating different investment horizons.
5Regulatory filing: The 8-K filing serves to formally register these notes with the SEC.
6Inclusion of legal opinions: The filing includes the legal opinion from Faegre Baker Daniels LLP concerning the notes, along with their consent.

WELLS FARGO & COMPANY/MN 8-K Report, Exhibit Filing (Nov 6, 2018)

Summary

Key Highlights

Frequently Asked Questions