Barclays has been fined £40m over capital raising that averted its need for taxpayer aid during the 2008 financial crisis.
The Financial Conduct Authority (FCA) found that the bank should have disclosed more details to the stock market about the £11.8bn in funding, from Qatari and other sovereign investors, that it had previously described as “reckless” and lacking integrity.
The penalty followed a protracted investigation that began in 2013 but was held up by criminal proceedings brought by the Serious Fraud Office that led to the acquittal of all defendants charged, including Barclays.
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A decision by the bank not to refer the FCA’s enforcement case, in 2022, to an Upper Tribunal meant that the watchdog’s planned fine could be imposed. It had initially planned a £50m fine but lowered the sum when the bank dropped its appeal.
The FCA’s regulatory action concerned Barclays’ navigation of the events of 2008/9 when the-then Labour government took huge stakes in major lenders, including Lloyds and RBS – now NatWest – to prevent a collapse of the banking system.
The case involved the bank paying hundreds of millions of pounds in fees to certain Qatari entities that were key investors as part of the fundraising efforts.
Barclays, the FCA said, paid one Qatari entity £322m in fees for its participation over a number of years, which it did not tell shareholders about.
The regulator said of its action: “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.”
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Joint executive director of enforcement and market oversight, Steve Smart, added: “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.
A spokeswoman for Barclays said in response that “in view of the time elapsed since the events, Barclays wishes to draw a line under the issues”.
She added: “Barclays does not accept the findings of the decision notices and this has been acknowledged by the FCA.”