The Financial Services Authority (FSA) is investigating allegations that State Street overcharged Ireland’s state pension fund, as well as the Royal Mail and Sainsbury pension funds, reports ft.com.

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Ireland’s national debt agency says it notified Irish police that State Street reaped €3.2m in improper fees and trading profits from the national pension fund, which was selling €4.7bn in assets to generate cash to invest in the country’s banks, adds ft.com.

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However, State Street says it’s reimbursed the Irish debt agency and several other clients, and fired three employees linked to the transactions. It also reported the matter to the FSA in September 2011. Read more.