FCA Fines Barclays £40 million

The Financial Conduct Authority (FCA) has fined Barclays £40 million in total for its failure to disclose certain arrangements with Qatari entities in 2008.

This follows Barclays’ decision to withdraw its referral of the FCA’s planned action 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 – the FCA’s earlier press release is linked in the notes below. The FCA notes Barclays’ statement on this matter.

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.

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 events in 2008 were of national importance as banks sought emergency recapitalisation. The FCA has a primary objective to ensure market integrity. Banks should treat their obligations to the market and shareholders seriously.

The FCA welcomes the decision by Barclays to withdraw the reference of this case to the Upper Tribunal. The FCA recognises 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.

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.

“It is important that listed firms provide investors with the information they need.”