Barclays to Pay $97 Million to Settle Charges It Overcharged

Posted on May 18th, 2017 at 10:22 AM
Barclays to Pay $97 Million to Settle Charges It Overcharged

From the Desk of Jim Eccleston at Eccleston Law LLC:

Barclays Capital has agreed to settle SEC charges for $97 million. According to the SEC, Barclays Capital allegedly overcharged 24,200 clients in 2 wrap accounts during a 5 year period.

Moreover, the SEC alleged that the firm failed to conduct promised due diligence on its investment strategies. Barclays Capital said the fees included in the 2 wrap accounts would help cover due diligence and monitoring of investment strategies offered by sub-managers. The due diligence fees varied between 0.32% and 1.75% of assets. However, due to the lack of resources, Barclays Capital did not actually perform the promised monitoring. Additionally, during that five year period, Barclays Capital overcharged 22,138 clients by $2 million in excess fees as a result of using old or inaccurate pricing information.

The $97 million dollar settlement includes a fine of $30 million, $63.8 million in disgorgement, and a $3.6 million refund to certain clients.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial advisors including Broker Litigation & Arbitration, Strategic Consulting Services, Regulatory  Matters, Transition Contract Review, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

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We just wanted to say thanks for your work in helping us get back some of the money we lost. We are not by any means rich, but we have saved some money and we have done so through a tight-fisted approach to most everything we do. So losing a significant chunk of money hurt…especially at a time when everyone else was growing their accounts. We really appreciate the work you did.

Allan and Adele


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