Barclays Settles $97 Million in Overcharge Allegations
Barclays has settled with the SEC for $97 million over allegations it overbilled clients in its former U.S. wealth-management business, the Financial Times writes.
The U.K. bank allegedly overcharged thousands of clients at Stifel Financial, the U.S. wealth unit that Barclays sold in 2015 along with about $56 billion in client assets, according to the paper.
In total, the bank over-billed clients by $50 million for due diligence and third-party investment monitoring services performed inadequately, which affected more than 2,000 advice program clients; excessive mutual-fund fees that hurt 60 brokerage clients; and miscalculated bank fees that affected more than 22,000 accounts, the FT writes.
“Barclays failed to ensure that clients were receiving the services they were paying for,” Dabney O’Riordan, co-chief of the SEC enforcement division’s asset management unit, said in a statement.
Barclays did not admit or deny wrongdoing as part of the settlement, which will be used in part to refund its former clients, according to the FT.
The bank will put up $93.5 million, which includes $13.8 million in interest and a $38 million penalty, to a fund that will pay back affected clients, the Wall Street Journal writes. In addition, Barclays will pay $3.5 million to some advice and brokerage customers directly, according to the Journal.