The UK Financial Conduct Authority has fined Barclays £40 million over the bank’s conduct in its October 2008 capital raising, in which it failed to disclose certain arrangements with Qatari entities.
According to the financial watchdog, Barclays’ behavior was reckless and lacked integrity, although the events in 2008 were of national importance as banks sought emergency recapitalization.
The FCA recognized that this case concerns disclosure decisions made in the context of very large and complex capital raisings that took place many years ago under considerable market pressure.
“Barclays’ misconduct was serious”
The FCA, which has a primary objective to ensure market integrity, requires banks to treat their obligations to the market and shareholders seriously. The regulator’s first warning notices against Barclays were issued in 2013.
The case was paused pending criminal proceedings brought by the Serious Fraud Office. It was restarted following the dismissal of proceedings against Barclays and the acquittal of the other parties.
The FCA published decision notices setting out its case against Barclays in October 2022 and Barclays chose to refer the case to the Upper Tribunal, which is independent from the FCA and hears appeals against enforcement cases. The FCA had previously decided to impose a fine of £50 million in total.
The £40 million fine follows Barclays’ decision to withdraw its referral of the FCA’s planned action to the Upper Tribunal.
Steve Smart, joint executive director of enforcement and market oversight at the FCA said: “Barclays’ misconduct was serious and meant investors did not have all the information they should have had. However, the events took place over 16 years ago and we recognize that Barclays is a very different organization today, having implemented change across the business. It is important that listed firms provide investors with the information they need.”
