Barclays has been fined £40 million by the Financial Conduct Authority (FCA) for failing to disclose certain arrangements with Qatari entities during a 2008 capital raising, it was revealed Monday.
Barclays Fined £40m by the FCA
The FCA announced the decision and said it follows Barclays’ withdrawal of its referral of the case to the Upper Tribunal.
“The action was based on findings which included that Barclays’ conduct in its October 2008 capital raising was reckless and lacked integrity,” stated the FCA.
The regulator explained that it first issued warning notices against Barclays in 2013, but the case was paused pending criminal proceedings brought by the Serious Fraud Office. It was restarted following the dismissal of these proceedings.
The FCA had initially proposed a fine of £50 million but reduced this amount in light of Barclays’ decision to withdraw the referral.
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 recognise that Barclays is a very different organisation today, having implemented change across the business.”
The FCA emphasised the importance of listed firms providing investors with the necessary information.
