The Financial Conduct Authority has fined State Street £22,885,000 for "a deliberate strategy to charge clients substantial mark-ups on certain transitions, in addition to the agreed management fee or commission" by the bank's Transitions Management business.
Those mark-ups had not been agreed by clients, and were concealed from them, said the FCA.
Tracey McDermott, director of enforcement and financial crime, said:
The findings we publish today are another example of a firm that has acted with complete disregard for the interests of its customers. State Street UK allowed a culture to develop in the UK TM business which prioritised revenue generation over the interests of its customers. State Street UK’s significant failings in culture and controls allowed deliberate overcharging to take place and to continue undetected. Their conduct has fallen far short of our expectations.