State Street UK fined £23m by FCA for overcharging

FCA

Financial Conduct Authority (FCA) has fined custody bank State Street UK £22.9m for overcharging clients.

The FCA said six clients had been charged $20.2m (£12.3m) too much for transition management services between June 2010 and September 2011.

The FCA said the firm had acted with "complete disregard" for customers.

State Street UK gained a 30% discount on the fine for settling at an early stage in the investigation. It said it "deeply regretted" its failings.

Custody banks manage cash and take care of administration for investment firms, including pension funds.

The FCA said the company had acted deliberately and with complete disregard for the interests of its customers by prioritizing revenue generation over service to them.

When challenged about fees by a client, the FCA said the company claimed the mark-up had been made in error and offered a refund, but failed to acknowledge it had overcharged on other transactions.