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Barclays to Pay $97 Million for Overcharging Clients

The job of the most honest seller is to sell you, not to give you reasons to buy from a competitor. That over-riding reality drives the free-enterprise system, and places a responsibility on you.

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May 10, 2017

Overcharging

Source: www.sec.gov

The Securities and Exchange Commission today announced an enforcement action requiring Barclays Capital to refund advisory fees or mutual fund sales charges to clients who were overcharged.

In a settlement of more than $97 million, Barclays agreed to settle three sets of violations that resulted in clients being overbilled by nearly $50 million.

"Barclays failed to ensure that clients were receiving the services they were paying for," said C. Dabney O'Riordan, Co-Chief of the SEC Enforcement Division's Asset Management Unit. "Each set of clients who were harmed are being refunded through the settlement."

Without admitting or denying the SEC's findings, Barclays agreed to create a Fair Fund to refund advisory fees to harmed clients. The Fair Fund will consist of $49,785,417 in disgorgement plus $13,752,242 in interest and a $30 million penalty.