Barclays Capital agreed to pay $97 million Wednesday to settle Securities and Exchange Commission charges that the firm overcharged clients for mutual fund sales or fees to clients in its wealth and investment management business.
Barclays agreed to three sets of violations that resulted in clients being overbilled by nearly $50 million.
From September 2010 through December 2015, Barclays Capital, then a dually registered investment advisor and broker-dealer, improperly charged certain advisory clients almost $50 million in advisory fees.
During that time period, Barclays Capital “falsely represented to advisory clients that it was performing ongoing due diligence and monitoring of certain third-party managers who managed advisory clients’ assets using certain investment strategies, when Barclays Capital was not performing such due diligence,” the SEC order states.
As a result, Barclays Capital improperly charged 2,050 client accounts approximately $48 million in fees for these promised services.