barclays to pay 97 million to settle charges it overcharged clients

Barclays To Pay $97 million on Claims it Overcharged Clients

Barclays Plc the London based bank will pay $97 million to settle U.S Securities and Exchange Commission claims including allegations that the bank  falsely charged clients for services that were not being performed. The bank over billed customers by nearly $50million through violations including imposing fees for due diligence that was’t being performed and collecting excess mutual fund fees by steering clients into more expensive share classes. The SEC’s enforcement division says that each set of clients who were harmed are being refunded through settlement. The bank will pay a $30 million penalty and more than $60 million in disgorgement and prejudgment interest.

‘SAFE’ Investment May Not Be So Safe Warns U.S SEC’s Official.

  SAFE investment were developed in Silicon Valley and are targeted toward Venture Capitalist. The instruments let them purchase the opportunity to become future equity holders in a company if certain events are triggered such as the company goes public or raises a substantial amount of funds. According to a paper published on it last year, SAFEs have a number of risky features. While they resemble convertible notes, they do not accrue interest. They also do not pay dividends and Shareholders are not granted voting rights. Yet they are increasingly being sold to retail investors through Crow funding offers despite it being designed  originally for sophisticated investors. Retail investors have been warned to tread carefully before putting their money into this risky new type of start-up financing vehicle that may never provide a return on their investments.


Warren Buffet Says Money Spent On Plumbers Better Than In Hedge Funds.

When Warren Buffet says something on investment you must pay attention. Buffet  86, and billionaire investor recently said at the annual meeting of his Berkshire Hathaway Inc. argued that people would be better off sticking their money in an index fund than paying the high fees charged by hedge funds managers. He said that in aggregate, investment professionals aren’t worth their fees. According to him, if you go to a dentist, or hire a plumber, there is added value by the professionals as a group compared to doing it yourself or just randomly picking laymen. In his opinion, in the investment world it is not true. The active group, the people that are professionals in aggregate, are not can not, do better than the aggregate of people who just sit tight. Buffet has also challenged the 2-and 20 compensation model for hedge fund managers.

138 Million Nigerians Do Not Trust Insurance

Despite the reforms that have swept through the Insurance Industry over the years especially recapitalization, it’s disheartening to know that the level of mistrust of Insurance in Nigeria is still sky high. According to new survey report by foremost rating company Agusto & Co a whopping 138 million people out of the 180 million – plus population do not trust Insurance will work as a concept. Regrettably, the Insurance Industry has not done much in the areas of creating awareness and consumer education. Less than five Insurance companies advertize on television and radio in Nigeria. Some Insurance companies don’t even have communications/PRO department. Yet they want public perception of Insurance to change positively in their favor.