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Barclays fined £75m for overcharging clients


Barclays has landed a $97m (£75m) bill from the Securities and Exchange Commission for overcharging clients on advisory services and fund sales.

The payment includes a $49.8m refund plus $13.8m in interest and a $30m penalty. An additional $3.5m will go to advisory clients who invested in third-party investment strategies that underperformed while going unmonitored.

The SEC found Barclays charged 2,000 clients for due diligence and monitoring of investment services that was not carried out as represented.

Barclays has also been caught recommending more expensive share classes to clients when cheaper options were available.

Additionally, the bank was found to have charged 22,138 clients excess fees due to miscalculations and billing errors.

SEC co-chief of the enforcement division’s asset management unit C Dabney O’Riordan says:  “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.”

CEO weathers stormy AGM

The settlement came as Barclays chief executive faced calls from shareholders to resign at the company’s AGM.

In April, it was revealed the FCA and the Prudential Regulation Authority are investigating Jes Staley and the bank after he tried to find out the author of a 2016 whistleblowing letter.

The Financial Times reports angry shareholders questioned the “moral calibre” of the bank at yesterday’s AGM and said it “beggars belief” that Staley was not aware of whisteblower procedures.

Thirteen per cent of shareholders withheld their vote for Staley’s re-election, while 2.4 per cent voted against him. Proxy adviser ISS had advised clients against voting for Staley.



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Fit for Work: guidance for employers published

On Friday, the Department for Work and Pensions published its guidance for employers on using the new Fit for Work (FfW) service to help ill employees return to the workplace. It also includes more details on the tax exemption for medical interventions that commenced on 1 January 2015.


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There are 2 comments at the moment, we would love to hear your opinion too.

  1. Take note FCA. Once you’ve finalised your logo obviously.

  2. I suspect that there’s been a lot of double charging going on – charging a fee for advice and then also receiving commission from full fat share classes.

    I reviewed a high street bank ‘wealth’ DFM portfolio held in Trust last year and it still had lots of full fat funds despite them charging initial fees, ongoing fees and an exit fee! The costs were eye watering and the portfolio wasn’t held tax effectively neither and was therefore full of CGT. Oh, and a risk assessment hadn’t been done nor the ‘adviser’ heard from since the assets were settled into trust circa 10 years previously.

    There are lots of elephants in the room and yet stuff like this still continues.

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