U.S. Attorney Carmen M. Ortiz for the District of Massachusetts,
Director Andrew J. Ceresney of the Division of Enforcement for the
Securities and Exchange Commission (SEC) and Secretary Thomas E. Perez
of the U.S. Department of Labor (DOL), announced that State Street Bank
and Trust Company agreed
to pay a total of at least $382.4 million to settle a lawsuit alleging fraudulent foreign currency exchange charges.
The
settlement includes $155 million to the Department of Justice, $167.4
million in disgorgement and penalties to the SEC and at least $60
million to Employee Retirement Income Security Act (ERISA) plan clients
in an agreement with the DOL, to settle allegations that it deceived
some of its custody clients when providing them with indirect foreign
currency exchange (FX) services.
According to a statement
from the Justice Department, as part of the settlement with the
Department, State Street admitted that contrary to its representations
to certain custody clients, its State Street Global Markets division
(SSGM) generally did not price FX transactions at prevailing interbank
market rates. Instead, State Street admitted that SSGM executed FX
transactions by applying a predetermined, uniform mark-up (if the
custody client was a FX purchaser) or mark-down (if the custody client
was an FX seller) to the prevailing interbank rate for FX.
State Street is also alleged to have falsely informed custody clients
that it provided “best execution” on FX transactions, that it guaranteed
the most competitive rates available on FX transactions and that it
priced FX transactions based on a variety of factors when, in fact,
prices were largely driven by hidden mark-ups designed to maximize State
Street’s profits.
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Lochhead will focus on managing the
company’s relationships while collaborating with some of its biggest U.S.
clients including the chief investment offices of institutional, pension and
retirement plans.
“With headwinds for global growth, policy
uncertainties and volatility, our clients are increasingly looking to us for
cross-strategy advice to help navigate market risks at home and around the
world,” said James Sullivan, head of
PGIM’s Institutional Relationship Group.
“The addition of Cameron to our team demonstrates our commitment to further
deepening the insight and solutions we bring to our U.S. institutional
relationships.”
Lochhead joins from Russell Investments, where he was a regional director
responsible for managing relationships with corporate and state retirement plan
sponsor fiduciaries and executives including treasurers, CIOs, and analysts.
Previously, Cameron served in various sales management roles at Guggenheim
Partners, Internet Securities Inc., and Thomson Financial Services.
Lochhead will be based in Newark, New Jersey. NEXT: New VP Joins Innovest
New VP Joins Innovest Portfolio
Solutions
Innovest Portfolio Solutions in Denver, Colorado, has
appointed Jared Martin as vice president and consultant. Martin will
manage the relationships between service providers and plan sponsors while
providing ongoing vendor management services for clients. He will deliver
investment consulting services to committees, boards and individuals, as well
as lead several special projects for retirement plan clients.
Prior to joining Innovest, Martin was
director of relationship management with ICMA-RC. In this role, he was
responsible for the overall business relationship and retention of the clients
within his territory. Before becoming a relationship manager, Martin spent
eight years as financial planning manager with the company. He is on the board
of the Colorado Public Pension Coalition (CPPC).
Founded more than 20 years ago,
Innovest is an independent provider of fee-only, investment-related consulting
services. It was ranked among the Top 100 Retirement Plan Advisers in 2016 by
PLANADVISER. Innovest was also named the Retirement Plan Adviser Team of the
Year by PLANSPONSOR in 2014.
NEXT: Cavalier Investments Appoints CIO
Cavalier Investments Appoints CIO
Cavalier Investments has appointed Scott
Wetherington as chief investment officer. He will lead the research and
investment teams in enhancing Cavalier’s process of identifying
leading fund managers. Wetherington will also manage the firm’s new Tactical
Economic Strategy.
Wetherington has
spent three decades in the industry and has served multiple roles including
strategist, manager and analyst.
Prior
to joining Cavalier, Wetherington served as senior portfolio manager and chief
investment strategist for Lindner Capital Advisors from 2009 to 2016. At
Lindner, Wetherington was responsible for the firm’s process and portfolio
allocation models and lead the research and selection process for mutual funds
and ETFs. Previously, Wetherington worked for ING Investment Management as a
portfolio manager, overseeing active management of a multi-billion-dollar fixed
income accounts.
“Scott’s
decades of experience as a strategist, manager and analyst adds a diversity of
perspectives that few in the industry can offer, and we are thrilled that he is
joining our executive team,” says Gregory A. Rutherford, chief executive
officer of Cavalier Investments. “Scott’s proven commitment to rigorous
research and exhaustive due diligence, and his defensive-first approach align
with our aim to deliver relative returns in up markets, protect against losses
in down markets, and minimize trading costs through all cycles.”
NEXT: Raymond James and Next Retirement Solutions Partner
Raymond
James And Next Retirement SolutionsPartner
Raymond
James Financial Services (RJFS) has joined forces with Next Retirement Solutions, a team of experienced institutional retirement plan consultants and
financial advisors, according to Bill
Counsman, RJFS’s Western regional director.
“As a
group, we continue to innovate in order to provide the very best services for
our clients,” says Paul Neuner, managing
director-partner of NRS. “By partnering with Raymond James, we felt the
environment was conducive to implement new ideas and better serve these
important relationships. We believe with the support provided by Raymond James
we can not only add offices and team members, but also provide greater
customization and depth and breadth of services to our clients.”
Next
Retirement Solutions, formerly known as Neuner Retirement Services, is an
independent firm offering securities through RJFS.