The FCA has fined State Street UK £22.9 million (including a 30 per cent discount for early settlement) for failing to comply with Principles 3, 6 and 7 of the FCA’s Principles for Businesses during the period 1 January 2010 to 30 September 2011 (the relevant period).

The FCA found that, during the relevant period, State Street UK’s transition management (TM) business overcharged six clients, by applying undisclosed mark-ups on their transitions, in addition to the agreed management fee or commission.

The FCA noted that State Street UK has implemented a comprehensive remediation programme, at its own initiative, to resolve the charging issues that arose in the UK TM business.

State Street has not only enhanced the controls around its UK TM business, but taken also additional steps to bolster the control functions, governance and culture across all of its UK businesses.

Copies of the

final notice http://www.fca.org.uk/static/documents/final-notices/state-street.pdf

and

accompanying press release  http://www.fca.org.uk/news/state-street-uk-fined-transitions-management-failings