State Street will pay $88.8 million to resolve charges with the Securities and Exchange Commission that it overcharged mutual funds and other registered investment company clients for expenses related to the firm’s custody of client assets.

The overcharges included a secret markup that State Street tacked on to the cost of sending secured financial messages through the Society for Worldwide Interbank Financial Telecommunication (SWIFT) network.

Jaclyn Jaeger is a freelance contributor to Compliance Week after working for the company for 15 years. She writes on a wide variety of topics, including ethics and compliance, risk management, legal,...