Barclays Capital has agreed to pay more than $97m to the U.S. Securities and Exchange Commission (SEC) to settle allegations of overcharging clients.
SEC alleged the bank of charging more than 2,000 clients for due diligence and monitoring of strategies that were not being performed as represented.
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The bank was also accused of recommending more expensive share classes even though less expensive variants were available, and collected excess mutual fund sales charges from 63 brokerage clients in the process.
Moreover, the bank was found to secure excess fees from an additional 22,138 accounts owing to miscalculations and billing errors, SEC said. Overall, Barclays was accused of overbilling clients by about $50m.
Barclays agreed to the fine without admitting or denying the wrongdoings, and agreed to create a fair fund to refund affected clients. The fine includes a $30m penalty and over $60m in interest.
SEC enforcement division asset management unit co-chief C. Dabney O’Riordan said: “Barclays failed to ensure that clients were receiving the services they were paying for. Each set of clients who were harmed are being refunded through the settlement.”
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