State Street Notifies Asset Servicing Clients about Billing Review
December 17 2015 - 6:30AM
Business Wire
State Street Corporation announced today that it is informing
clients about a review that it initiated into the manner in which
it invoiced certain expenses to asset servicing clients. The
review, which is not complete, addresses the amounts invoiced for
specific categories of expenses. Based on the results of the review
to date, State Street believes that it has incorrectly invoiced
certain expenses to asset servicing clients, primarily in the
United States. State Street deeply regrets this matter. At the
conclusion of its review, State Street will compensate affected
clients fully, including interest, and make any required
improvements to its billing practices.
Based upon the Company’s preliminary assessment, over the
18-year period for which it has accessible records, approximately
$200 million or more of expenses may have been incorrectly
invoiced. During this 18-year period, State Street estimates that
it has invoiced asset servicing clients a total of approximately
$400 million for expenses falling within the categories being
reviewed. Annual amounts invoiced for these expenses ranged from
approximately $9 million in the early years to approximately $36
million in 2014. The actual amount to be reimbursed to clients will
not be known until the review is completed, and that amount could
differ materially from the Company’s preliminary assessment. In
fiscal year 2014, the categories of expenses under review
represented approximately 0.7 percent of State Street’s total asset
servicing fee revenue of $5.1 billion.
The Company will provide additional information on this matter
in its scheduled fourth quarter 2015 earnings release and call on
January 27, 2016.
About State Street Corporation
State Street Corporation (NYSE: STT) is one of the world's
leading providers of financial services to institutional investors,
including investment servicing, investment management and
investment research and trading. With $27.3 trillion in assets
under custody and administration and $2.2 trillion* in assets under
management as of September 30, 2015, State Street operates in more
than 100 geographic markets worldwide, including the US, Canada,
Europe, the Middle East and Asia. For more information, visit State
Street’s website at www.statestreet.com.
* Assets under management include approximately $25 billion as
of September 30, 2015, for which State Street Global Markets, LLC,
an affiliate of SSGA, serves as the distribution agent.
Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of U.S. securities laws, including statements about State
Street’s goals and expectations regarding its review into the
manner in which it invoiced certain expenses to asset servicing
clients, including the potential results of that review and related
matters. Terminology such as “believe,” “will,” “estimate,” “may,”
“expect,” “intend,” “priority,” “outlook,” “objective,” “plan,”
“forecast,” “anticipate,” “seek,” “trend,” “target,” “strategy” and
“goal,” or similar statements or variations of such terms, are
intended to identify forward-looking statements, although not all
forward-looking statements contain such terms. These statements are
not guarantees of future results or performance, are inherently
uncertain, are based on current assumptions that are difficult to
predict and involve a number of risks and uncertainties. Therefore,
actual outcomes and results may differ materially from what is
expressed in those statements, and those statements should not be
relied upon as representing State Street’s expectations or beliefs
as of any date subsequent to December 17, 2015.
Important factors that may also affect future results and
outcomes include, but are not limited to:
- the findings and conclusions, and the
other results of, State Street’s review of the way that it invoiced
certain expenses to asset servicing clients, including the ultimate
timing of concluding such review, the amounts of any expenses
determined to be reimbursable, either in the aggregate or to any
one or more specific clients, and other results of such review and
the outcomes of communications with clients, and of State Street’s
responses to any regulatory inquiries, regarding such review and
related matters;
- the results of, and costs associated
with, governmental or regulatory inquiries and investigations,
litigation and similar claims, disputes, or proceedings; and
- adverse publicity, whether specific to
State Street or regarding other industry participants or
industry-wide factors, or other reputational harm.
Other important factors that could cause actual results to
differ materially from those indicated by any forward-looking
statements are set forth in State Street’s 2014 Annual Report on
Form 10-K and its subsequent SEC filings. State Street encourages
investors to read these filings, particularly the sections on risk
factors, for additional information with respect to any
forward-looking statements and prior to making any investment
decision. The forward-looking statements contained in this news
release speak only as of the date hereof, December 17, 2015, and
State Street does not undertake efforts to revise those
forward-looking statements to reflect events after that date.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151217005207/en/
State Street CorporationAnthony Ostler, +1 617-664-3477orCarolyn
Cichon, +1 617-664-8672
State Street (NYSE:STT)
Historical Stock Chart
From Jun 2024 to Jul 2024
State Street (NYSE:STT)
Historical Stock Chart
From Jul 2023 to Jul 2024