A global bank has been fined Ksh6.9 billion for failing to disclose certain arrangements that it undertook with Qatari entities in 2008. In a press release on Monday, November 25, the Financial Conduct Authority (FCA) clarified that the decision follows Barclays’ decision to withdraw its referral of the FCA’s planned action to the Upper Tribunal, a suggestion that was welcomed by the FCA.
Moreover, the authority recognizes 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.
“The action was based on findings which included that Barclays’ conduct in its October 2008 capital raising was reckless and lacked integrity – the FCA’s earlier press release is linked in the notes below. The FCA notes Barclays’ statement on this matter,” the FCA statement read in part.
Further, the statement reiterated, “The FCA first issued warning notices against Barclays 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.”
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Barclays Case when First Published by FCA
The authority 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 authority had previously decided to impose a fine of KSh 8.6 billion in total.
Consequently, the events in 2008 were of national importance as banks sought emergency recapitalization. The FCA has a primary objective to ensure market integrity. Banks should treat their obligations to the market and shareholders seriously.
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 changes across the business.
“It is important that listed firms provide investors with the information they need.”
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Barclays
Barclays Plc is a bank holding company that provides a range of financial services, including retail banking, credit cards, corporate and investment banking, and wealth management.
Moreover, the company operates through two main divisions: Barclays UK and Barclays International. Barclays UK includes U.K. retail banking, consumer credit card services, wealth management, and corporate banking for small businesses.
Barclays International covers corporate banking, investment banking, U.S. and international credit card services, and global wealth management.
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