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.

Terri Kallsen will precede him next year as chair of the Board of Directors; Seay will take over that role in 2027.

3h ago
2 Min Read
CFP Board- Seay .png

The popular industry recruiting and retention barometer provided another window into the challenges facing LPL Financial with its latest major acquisition.

5h ago
3 Min Read
A man uses a magnifying glass to examine several pawn-like figures and wheeled gears spread out over pieces of paper with writing on them, symbolizing human capital strategy across widely dispersed business networks

The Wall Street powerhouse has built its wealth division in large part through big deals but is not "looking to make acquisitions just for the sake of it, " said CEO Ted Pick.

5h ago
3 Min Read
Ted Pick Morgan Stanley.jpg

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
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.

Bloomberg News
Regulatory actions and programs Litigation Barclays SEC
MORE FROM FINANCIAL PLANNING