The Financial Conduct Authority (FCA) has imposed a £40m fine on Barclays today for its failure to disclose connections with certain Qatari investors during the financial crisis, as it sought to avoid a government bailout.
The City watchdog said the FTSE 100 lender's conduct during a capital raise in 2008 was "reckless and lacking integrity" in a statement released today, and commended the bank's decision not to contest its ruling in court, as reported by .
"The events in 2008 were of national importance as banks sought emergency recapitalisation," the FCA stated. "The FCA has a primary objective to ensure market integrity. Banks should treat their obligations to the market and shareholders seriously."
This decision follows an earlier accusation by the FCA that Barclays had violated listing rules by agreeing to pay hundreds of millions of pounds in fees to certain Qatari investors "so that they would contribute new capital".
As part of the terms under which the Qatari entities agreed to participate in two share sales, Barclays entered into two advisory agreements involving payments to one of the Qatari entities totalling £322m over three and five years respectively, the FCA alleged in October 2022.
Although Barclays initially intended to challenge the decision at the Upper Tribunal, the fine today follows the bank’s decision to withdraw the claim.
Steve Smart, Joint Executive Director of Enforcement and Market Oversight at the FCA, commented that the bank's misconduct was "serious and meant investors did not have all the information they should have had".
He added: "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," In response, Barclays issued a statement saying it "does not accept the findings of the decision notices" but added: "In view of the time elapsed since the events, Barclays wishes to draw a line under the issues referred to in the Decision."