Barclays set for record fine
The Financial Conduct Authority (FCA), the City regulator, is set to impose another huge fine on Barclays for failing to ensure adequate protection for clients’ funds.
It is not the first time Barclays has faced a fine for such an offence. Though when it was first fined for failing to protect its customers’ funds three years ago, the banking giant received a sanction of just £1.1m.
The fine is believed to be in the region of £38m, which would make it a record punishment for this sort of misconduct, topping even the £33m sanction City regulators imposed on JP Morgan in 2010 in the wake of the collapse of Lehman Brothers.
Just four months ago Barclays was fined £26m for failing to manage a conflict of interest and failing to put controls in place when one of its former traders, Daniel James Plunkett, influenced the price of gold in 2012.
In a statement released on Tuesday, Barclays said it accepted the FCA’s finding that the investment bank had breached regulations during the period between November 2007 and January 2012, though Barclays stressed it did not profit from the issue and the customers weren’t affected.
“In this matter Barclays fell short of what is expected under the CASS Regulations. Barclays identified and self-reported to the FCA the issues giving rise to the FCA’s findings and we accept their conclusion,” a Barclays spokesperson said in a statement.
“Barclays has subsequently enhanced its systems to resolve these issues and to ensure we have the requisite processes in place.
“No client has suffered any loss as a consequence of this weakness in our processes which existed prior to January 2012”
The bank also stated it had identified the issue and resolved it “some time ago” as part of a plan that aims to enhance governance and controls around within the bank.
Barclays shares were down 1.10% to 229.10p at 10:44 on Tuesday.