FCA fines Barclays £40 million

The FCA has fined Barclays £40 million 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 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.

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."

In a statement, Barclays said: "Barclays announces that it has agreed with the FCA to withdraw its references to the Upper Tribunal of the Decision Notices regarding Barclays and Barclays Bank PLC concerning the 2008 capital raisings, first published by the FCA on 23 September 2022.

"In view of the time elapsed since the events, Barclays wishes to draw a line under the issues referred to in the Decision Notices and has decided not to contest the Decision Notices further. Barclays does not accept the findings of the Decision Notices and this has been acknowledged by the FCA. Notwithstanding the difference of view, Barclays has concluded that the interests of the Bank, its shareholders and other stakeholders are best served by withdrawing the References.

"A provision in respect of the financial penalty imposed by the FCA was taken in 2022 and there is no material financial impact on Barclays."