Barclays to pay $97M to settle SEC claims it overcharged clients

Barclays will pay $97 million to settle SEC claims including allegations that the firm falsely charged clients for services that weren’t being performed.

The London-based bank overbilled customers by nearly $50 million through violations including imposing fees for due diligence that wasn’t being performed and collecting excess mutual fund fees by steering clients into more expensive share classes, the SEC said in a statement Wednesday.

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As managing director and lead of Kotter's European practice, Nick Petschek draws on his wide skill set to help organizations formulate and achieve their strategy and culture goals. Nick aids clients in surfacing the delta between organizational aspirations and reality, closing that gap together. His career journey has been one of constant curiosity and learning. From the awe-inspiring circus to the nimble world of unicorn startups, to the process-oriented United Nations, he has tackled challenges related to telling a compelling story and envisioning a new future, scaling, sustainability, and culture transformation. His clients have ranged in size and industry, with a focus on technology and government.

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Barclays head offices London Bloomberg News March 2017
Signage shines through a window reflecting Barclays Plc head offices at the Canary Wharf business, financial and shopping district in London, U.K., on Tuesday, March 21, 2017. Barclays is considering Dublin for their EU base to ensure continued access to the single market, said people familiar with the plans,asking not to be named because the plans aren't public. Photographer: Luke MacGregor/Bloomberg

Barclays agreed to settle the claims without admitting or denying the agency’s findings, and agreed to set a fair fund to return money to affected clients.

“Barclays failed to ensure that clients were receiving the services they were paying for,” said C. Dabney O’Riordan, co-head of the SEC’s enforcement division’s enforcement unit. “Each set of clients who were harmed are being refunded through the settlement.”

The bank will pay a $30 million penalty and more than $60 million in disgorgement and prejudgment interest.

Andrew Smith, a Barclays spokesman, declined to comment.

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