State Street Corp. is in talks with the Securities and Exchange Commission to settle a potential action against the firm for allegedly overcharging its asset-servicing clients.
A State Street spokeswoman emailed a statement to Pensions & Investments stating that the company announced in 2015 it had reviewed how it had charged "certain expenses to asset servicing clients," and had "reimbursed most of (its) affected customers for those expenses."
The statement added: "We have implemented enhancements to our billing processes. Since that time, we have included this matter in our public disclosures, including our cooperation with investigations by governmental and regulatory authorities."
The SEC had informed State Street that it was looking to bring an action against the company asserting that it had overcharged clients for custody expenses, State Street noted Thursday in a regulatory filing.
"We have submitted to the staff a response and remain in discussions as to a potential settlement with the SEC," the statement added.