Banking and financial services giant Barclays Capital has agreed to refund $97 million to clients for misrepresenting services and overcharging advisory and mutual fund fees.
An investigation by the US Securities and Exchange Commission found Barclays overbilled clients to the tune of US$50 million.
It also failed to properly carry out an advisory service to monitor and perform due diligence on third-party investment managers for 2000 clients as represented.
In another incident, it collected excess mutual fund fees from 63 brokerage clients by recommending more expensive share classes when less expensive options were available.
Another 22,138 accounts were overcharged from miscalculations and billing errors.
Barclays did not confirm nor deny the SEC's findings, but agreed to create a fund to repay advisory fees to affected clients.
Barclays agreed to directly refund an additional US$3.5 million to advisory clients who invested in third-party investment managers and investment strategies that underperformed while going unmonitored. Those funds will go to brokerage clients who were steered into more expensive mutual fund share classes, the SEC said in a statement.
In a separate incident, Barclays was fined in March by the Australian corporate watchdog for failing to inform local clients they were exempt from holding an AFSL.