8-KRegulation FD

STATE STREET CORP 8-K Report, Regulation FD Disclosure (Jan 14, 2016)

Filed January 14, 2016For Securities:STTSTT-PG

Summary

State Street Corporation (STT) announced on January 14, 2016, a settlement with the Securities and Exchange Commission (SEC) to resolve an investigation concerning the solicitation of asset servicing business for public retirement plans. Importantly, State Street has not admitted or denied any wrongdoing in reaching this settlement. The SEC's order focused on actions by a former employee and consultants related to contract solicitations in Ohio during 2010, citing violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. As part of the settlement, State Street has agreed to pay a total of $12 million, comprising disgorgement and a penalty. This financial impact will be recognized in the company's results of operations for the fiscal quarter ended December 31, 2015. While this is a resolved matter, investors should note that the settlement pertains to past conduct and does not involve current admissions of guilt by the company.

Key Highlights

  • 1State Street Corporation reached a settlement with the SEC on January 14, 2016.
  • 2The settlement resolves an investigation into the solicitation of asset servicing business for public retirement plans.
  • 3The company has not admitted or denied the SEC's findings or conduct.
  • 4The SEC's order identified violations related to actions of a former employee and consultants in Ohio in 2010.
  • 5State Street will pay a total of $12 million in disgorgement and penalty.
  • 6The settlement cost will be recorded in the fiscal quarter ended December 31, 2015.

Frequently Asked Questions

The SEC investigation concerned State Street's solicitation of asset servicing business for public retirement plans, specifically focusing on actions by a former employee and consultants in Ohio in 2010.

No, State Street has stated that it has not admitted or denied the findings or conduct described in the SEC's order as part of the settlement.

State Street has agreed to pay $12 million in total, which includes disgorgement and a penalty. This amount will be recognized in the company's financial results for the fiscal quarter ended December 31, 2015.

The SEC's order and the settlement pertain to conduct that occurred in 2010 involving a former employee and consultants, suggesting it relates to past activities rather than current operational issues.