State Street Global Markets' decision to reimburse a UK pension plan for overcharging for services related to transition management is the result of a double billing of the client, according to a letter sent by the firm to customers.

“Our normal practice is to reflect our compensation as a commission on market trades and/or a management fee," State Street Global Markets said in a letter to clients, dated Oct. 7. "While we may agree to a compensation arrangement that entails both a commission and a management fee, in this instance both a commission and a management fee were applied without that being expressly communicated to the client."

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