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

Tags: Eccleston, Eccleston Law, James Eccleston, Eccleston Law LLC

Return to Archive

TESTIMONIALS

Previous
Next

As a financial advisor with over 20 years of experience, I feel fortunate to call Jim my attorney and friend. He is a fantastic lawyer and trusted advisor. He is skilled in the matters necessary to do the job well. He uses his thoughtful approach and calm demeanor to achieve a positive outcome for the client. If you want to feel confident that nothing will be missed and that you will be represented in a highly professional manner, call Jim Eccleston.

Bill C. and Dan M.

LATEST NEWS AND ARTICLES

March 11, 2025
Former CNBC Analyst Pleads Guilty to $2.7 Million Securities Fraud Scheme

James Arthur McDonald Jr., a former financial advisor and frequent CNBC guest analyst, has agreed to plead guilty to securities fraud, admitting to defrauding investors out of at least $2.7 million, as reported by ThinkAdvisor. The felony charge carries a maximum sentence of 20 years in federal prison.

March 10, 2025
Wells Fargo and Merrill Lynch Settle SEC Charges Over Cash Sweep Program Policies

The Securities and Exchange Commission (SEC) has announced settlements with Wells Fargo Clearing Services LLC, Wells Fargo Advisors Financial Network LLC, and Merrill Lynch, Pierce, Fenner & Smith Incorporated over allegations that they failed to implement proper policies and procedures for their cash sweep programs.

March 7, 2025
FINRA Orders $8.2 Million in Restitution for Mutual Fund Customers

FINRA has directed Edward Jones, Osaic Wealth, Inc., and Cambridge Investment Research, Inc. to pay more than $8.2 million in restitution to customers harmed by failures to provide mutual fund sales charge waivers and fee rebates.