State Street and The US Securities and Exchange Commission (SEC) are in discussions for possible settlement on allegations of overcharging asset clients.
Last week, SEC staff informed State Street that it intends to bring an action against State Street, asserting that it overcharged some clients for custody expenses.
In 2015, State Street said it was reviewing the manner in which it had invoiced certain expenses to asset servicing clients.
A spokesman for State Street said: “We have reimbursed most of our affected customers for those expenses, and has implemented enhancements to its billing processes. Since that time, we have included this matter in our public disclosures, including our cooperation with investigations by governmental and regulatory authorities.”
They added: “We have submitted to the staff a response and remain in discussions as to a potential settlement with the SEC.”
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