Barclays in $13.75m settlement with US regulator

The Financial Industry Regulatory Authority (FINRA) has ordered Barclays to pay $13.75m (£9.3m) to settle claims over unsuitable mutual fund transactions and related supervisory failings.

The US regulator has ordered Barclays Capital to pay more than $10m in restitution, including interest, to affected customers for mutual fund-related suitability violations.

These violations relate to an array of mutual fund transactions including mutual fund switches.

Additionally, FINRA said the firm failed to provide applicable breakpoint discounts to certain customers. Barclays was also censured and fined $3.75m.

FINRA found that from January 2010 to June 2015, there were more than 6,100 unsuitable mutual fund switches resulting in customer harm of around $8.63m.

Brad Bennett, FINRA’s executive vice president and chief of enforcement, said: “The proper supervision of mutual fund switching and breakpoint discounts is essential to the protection of retail mutual fund investors, and this case highlights FINRA’s commitment to ensuring that firms meet these obligations.”

In concluding this settlement, Barclays neither admitted nor denied the charges, but consented to the entry of FINRA’s findings.