BNY Mellon Will Pay $30 Million to SEC to Settle FX Case
- Agency says bank misled clients, keeping most favorable rates
- Company earlier paid U.S., New York, investors in same matter
This article is for subscribers only.
Bank of New York Mellon Corp. will pay a $30 million penalty to the U.S. Securities and Exchange Commission in a settlement related to the bank’s pricing of foreign-exchange transactions.
The SEC found that the bank misled certain custody clients on foreign-exchange transactions from 2000 to at least 2011, according to a regulatory filing Monday. Instead of providing the best rates available, as it promised customers, the bank was accused of obtaining the best rates for itself and gave less favorable terms to clients, pocketing the difference.