Barclays Capital—Unsuitable Mutual Fund Transactions

Ponzi scheme attorneysBarclays Capital Allegedly Made Unsuitable Mutual Fund Transactions

Barclays Capital, the London-based bank, allegedly made unsuitable mutual fund transactions including more than 6,100 fund switches, according to FINRA.

Barclays‘ supervisory systems, from January 2010 to June 2015, allegedly were not sufficient to prevent unsuitable switching or to meet particulars of the firm’s obligations regarding the sale of mutual funds to retail brokerage customers, FINRA notes.

A mutual fund switch involves one or more mutual fund redemption transactions coupled with one or more related mutual fund purchases, FINRA reports. In addition, Barclays did not admit or deny wrongdoing in agreeing to the settlement, which includes a censure, according to FINRA.

Barclays Facing Payment of $13.75 Over the Sales of Mutual Funds in Order to Settle US Regulatory Charges

Barclays Capital is looking at payments of more than $13.75 million in order to settle US regulatory charges that it allowed retail brokerage customers to make unsuitable mutual fund transactions, including more than 6,100 fund switches, over a five-year period, according to FINRA.

FINRA breaks down the payment, noting that Barclays Capital Inc unit will pay more than USD 10 million in restitution, including interest, to affected customers, and was fined USD 3.75 million, FINRA reports. Barclays’ inadequate supervisory procedures allegedly caused USD 8.63 million of harm to customers, most of whom were not warned of such costs, FINRA reports.

Finally, FINRA also notes that, from March to August 2014, Barclays allegedly processed 1,723 fund transactions, or 39 percent of those it reviewed, that were inconsistent with its customers’ goals, risk tolerance or other investments.

The Peiffer Rosca Wolf Securities Lawyers Often Assist Investors

The Peiffer Rosca Wolf securities lawyers assist investors who lose money as a result of inadequate supervisory procedures. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of inadequate supervisory procedures encouraged to contact the securities lawyers at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.

Alan Rosca (1157 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.