FCA fines State Street UK £23m for overcharging clients

The regulator found the group's UK Transitions Management (TM) business used a deliberate strategy to charge clients substantial mark-ups on certain transitions between June 2010 and September 2011, in addition to the agreed management fee or commission, and concealed the fees from them. The service provided support with structural changes to asset portfolios with the intention of managing risk and increasing returns, for example when clients needed a large portfolio of securities to be restructured or decided to remove or replace asset managers. Tracey McDermott, director of enforcem...