Barclays boss Jes Staley fined £642430 over whistleblower scandal

Daniel Fowler
May 11, 2018

The Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) have jointly fined chief executive of Barclays Group James Staley £642,430 for breaching individual conduct rules when he tried to identify the author of an anonymous letter to the bank in 2016.

The FCA and Prudential Regulation Authority will impose the financial penalty on Staley for failing to behave "with due skill, care and diligence" in the whistleblower scandal.

The fine follows a one-year probe that found Staley made repeated efforts to identify a whistleblower who criticized his decision to hire Tim Main to run the bank's financial institutions group in NY.

Regulators said the fine was only 10 per cent of his overall pay package.

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I accept the conclusions of the Board, the FCA, and the PRA, following their respective investigations, and the sanctions which they have each applied.' In respect of the FCA's and PRA's investigations relating to Barclays Bank PLC, each of Barclays Bank PLC and Barclays Bank UK PLC have now agreed to be subject to requirements to report to the FCA and PRA on certain aspects of their whistleblowing programmes.

The regulators have also imposed new requirements on Barclays specifically to produce annual reports on its treatment of whistleblowers, making individual senior managers responsible for the systems the bank has in place under the Senior Managers and Certification Regime.

"Whistleblowers play a vital role in exposing poor practice and misconduct in the financial services sector". "I have consistently acknowledged that my personal involvement in this matter was inappropriate", Staley said. "Mr Staley's behavior fell below the standard we require, resulting in today's fine and public censure", said PRA CEO Sam Woods. Barclays's own investigation had found Staley "honestly, but mistakenly, believed" his actions were permitted. That included a 30 percent discount for him agreeing at an early stage to settle.

"Mr Staley acted unreasonably in proceeding in this way and, in doing so, risked undermining confidence in Barclays' whistleblowing policy and the protections it afforded to whistleblowers", the FCA said.

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