Wells Fargo & Co is slashing an approved list of money managers and investment vehicles that its stockbrokers market to the firms wealthy clients, a change of direction that has rattled the third-largest U.S. brokerage network.Executives said the clampdown protects clients from exposure to a plethora of investment models that have received little oversight. It will also reduce the firms risk at a time when litigation and compliance costs are rising industry wide.Money managers affected by the cull range from big names such as JP Morgan Asset Management Inc and Legg Mason to scores of small hedge funds and regional managers. For Legg Mason alone, the number of investment products on the list will shrink to 12 from 56, according to documents reviewed by Reuters.

More:  Exclusive: Wells Fargo cuts approved list of money managers | Reuters.