What are "Principal at Risk Securities"?

"Principal at Risk Securities" are investment products where the return of the initial investment is not guaranteed. The amount returned to the investor at maturity depends on the performance of an underlying asset or index. In this case, if the iShares® MSCI Emerging Markets ETF or the S&P 500® Index underperform significantly, investors could lose part or all of their principal.

What is the guarantee from Wells Fargo & Company?

Wells Fargo & Company (the parent company) provides a full and unconditional guarantee for these Medium-Term Notes issued by its subsidiary, Wells Fargo Finance LLC. This means that Wells Fargo & Company commits to fulfilling the obligations of the notes if Wells Fargo Finance LLC is unable to do so.

What is the purpose of filing these specific exhibits with the SEC?

The purpose of this filing is to provide the necessary documentation and legal assurances related to the issuance of these new Medium-Term Notes. This includes making public the official forms of the notes and the legal opinion from Faegre Baker Daniels LLP, which attests to the validity and enforceability of the notes and the guarantee.

Are these notes suitable for all investors?

Given the "Principal at Risk" nature of these securities, they are generally suitable for investors who understand the associated risks, have a high tolerance for volatility, and are seeking exposure to emerging markets or the S&P 500® Index with the potential for capital loss. It is recommended that investors consult with a financial advisor to determine suitability.

WELLS FARGO & COMPANY/MN 8-K SEC Disclosure

Summary

This Wells Fargo & Company (WFC) 8-K filing from November 15, 2019, primarily serves to disclose the details of new Medium-Term Notes, Series A, issued by its subsidiary Wells Fargo Finance LLC. These notes are structured as "Principal at Risk Securities" and are linked to either the iShares® MSCI Emerging Markets ETF or the S&P 500® Index, with a maturity date of May 17, 2022. Investors should note that the principal amount of these notes is at risk, meaning investors could lose a portion or all of their initial investment depending on the performance of the underlying ETFs.

Key Highlights

1Wells Fargo Finance LLC issued new Medium-Term Notes, Series A, on November 14, 2019.
2The notes are structured as "Principal at Risk Securities", implying potential loss of principal.
3The securities are linked to the performance of the iShares® MSCI Emerging Markets ETF.
4The securities are also linked to the performance of the S&P 500® Index.
5The maturity date for these notes is May 17, 2022.
6Wells Fargo & Company provides a full and unconditional guarantee for these notes.
7The filing includes the forms of the notes and an legal opinion from Faegre Baker Daniels LLP regarding the notes and the guarantee.

WELLS FARGO & COMPANY/MN 8-K Report, Exhibit Filing (Nov 15, 2019)

Summary

Key Highlights

Frequently Asked Questions