Barclays will pay more than $13.75m to settle U.S. regulatory charges that it let retail brokerage customers make unsuitable mutual fund transactions, including more than 6,100 fund switches, over a five-year period.
Reuters reports that the Financial Industry Regulatory Authority on Tuesday said the bank's Barclays Capital unit will pay more than $10m in restitution, including interest, to affected customers, and was fined $3.75m.
Barclays did not admit or deny wrongdoing in agreeing to the settlement, which includes a censure. A spokesman had no immediate comment.
FINRA said that from January 2010 to June 2015, Barclays' inadequate supervisory procedures failed to stop many customers from swapping one mutual fund for another when the benefits of switching might be undermined by the transaction costs.
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