How Will Barclays (BCS) Stock React To SEC Compliance Failure Charge?

NEW YORK (TheStreet) -- Barclays PLC (BCS) was charged with failing to build suitable compliance systems, which resulted in overcharges and client losses of $472,000, following the firm's Lehman Brothers' advisory business purchase in 2008, the Wall Street Journal reports.

The SEC charge alleges that Barclays violated securities laws and "subjected its clients to a host of improper practices and inadequate disclosures," as it failed to reinforce its compliance infrastructure following the acquisition, the SEC said in a statement, the Journal noted.

The SEC goes on to say that Barclays didn't keep proper books and records, which would have helped it to avoid violations. As a result of the firm's actions it received over $3.1 million in additional revenue, while clients were overcharged and lost money, the Journal said.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Barclays will pay $15 million to settle the SEC case and submit to an internal review.

Additionally, Barclays was hit with a $61.9 million fine by the U.K Financial Conduct Authority for not properly safeguarding client assets at its investment bank, the Journal added.

Shares of Barclays closed lower by 1.05% to $15.10 on Tuesday.

BCS Chart BCS data by YCharts

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