Barclays’ Former CEO Fined £1.8 Million by FCA

<p>Britain's
financial regulator, the Financial Conduct Authority (FCA), announced on
Thursday that it has imposed a £1.8 million fine on Barclays’ former Chief
Executive, James Staley. The fine comes in the wake of allegations that Staley
"recklessly misled" the FCA regarding his relationship with the
disgraced financier, Jeffrey Epstein.</p><p>Jeffrey
Epstein, who was awaiting trial on sex-trafficking charges, tragically took his
own life in jail in 2019, and his connections have come under intense scrutiny.</p><p>FCA's
Thorough Investigation Reveals Serious Regulatory Breach</p><p>The
FCA, after a thorough investigation, found that Mr. Staley had "recklessly
approved a letter sent by Barclays to the FCA. The letter contained two
misleading statements, about the nature of his relationship with Jeffrey
Epstein and the point of their last contact." These actions, according to
the FCA, constituted a serious breach of regulatory expectations.</p><p>In
response to the FCA's findings, Barclays has announced that its Remuneration
Committee has decided that James Staley should be ineligible for, or forfeit,
bonuses and long-term incentives amounting to a significant £17.8 million
($21.89 million).</p><p>Staley
has appealed against the FCA's findings to the Upper Tribunal. It means that
the FCA's findings are provisional and subject to further legal proceedings.</p><blockquote><p lang="en" dir="ltr">We've fined former CEO of Barclays, James Staley, £1.8 m and banned him from holding a senior management or significant influence function in the <a href="https://twitter.com/hashtag/FinancialServices?src=hash&amp;ref_src=twsrc%5Etfw">#FinancialServices</a> industry. <a href="https://t.co/tc6zmIoNYt">https://t.co/tc6zmIoNYt</a></p>— Financial Conduct Authority (@TheFCA) <a href="https://twitter.com/TheFCA/status/1712423934153331170?ref_src=twsrc%5Etfw">October 12, 2023</a></blockquote><p>Barclays' Response: FCA Accuses
of Misleading Statements</p><p>The
Bank of England, in a separate statement, expressed its support for the FCA's
decision against James Staley. "It is imperative that senior managers act
with integrity and are open and cooperative with the regulators," the <a href="https://www.financemagnates.com/tag/bank-of-england/" target="_blank" rel="follow">Bank
of England </a>emphasized.</p><p>"In
its response, <a href="https://www.financemagnates.com/tag/barclays/">Barclays</a>
relied on information supplied by Mr. Staley," the FCA said. "Mr.
Staley confirmed the letter was fair and accurate. In reality, in emails
between the two, Staley described Epstein as one of his 'deepest' and 'most
cherished' friends."</p><p>The
FCA emphasized that a chief executive needs to exercise sound judgment and set
an example for staff at their firm.</p><p>"Mr.
Staley failed to do this," said Therese Chambers, FCA joint executive
director of enforcement and market oversight. "We consider that he misled
both the FCA and the Barclays Board about the nature of his relationship with
Mr. Epstein."</p><p>The
investigation into Staley's relationship with Epstein began in August 2019. The
<a href="https://www.financemagnates.com/tag/fca/">FCA</a> requested an
explanation from him about the steps he had taken to ensure that there was no
impropriety in his connection with Epstein. </p>

This article was written by Tareq Sikder at www.financemagnates.com.