State Street Public Plan Solicitation Practices Investigated

State Street Corporation has revealed it is under investigation for its solicitation of asset-servicing business for public retirement plans.

In a 10-Q filing with the Securities and Exchange Commission (SEC), State Street said it is responding to subpoenas from the Department of Justice and the SEC for information regarding its solicitation practices with public plans and has retained counsel to conduct a review. 

The review will include “our use of consultants and lobbyists in our solicitation of business of public retirement plans and, in at least one instance, political contributions by one of our consultants during and after a public bidding process,” the firm said.

State Street noted, “adverse outcomes could have a material adverse effect on our business and reputation.”