Barclays PLC (LSE:BARC) has been fined £40 million by the Financial Conduct Authority (FCA) for failing to disclose certain agreements with Qatari entities during its 2008 capital raising efforts.
The fine follows Barclays' decision to withdraw its referral of the FCA's enforcement action to the Upper Tribunal.
The FCA’s investigation found that Barclays’ conduct in the October 2008 capital raising did not live up to the regulator's standards of market integrity.
Barclays failed to disclose significant payments tied to agreements with Qatari investors, said the FCA, impacting transparency for shareholders and the broader market during a critical period of financial instability.
Although Barclays maintains that it disagrees with the FCA’s finding, the bank today stated: “Notwithstanding the difference of view, Barclays has concluded that the interests of the bank, its shareholders and other stakeholders are best served by withdrawing the references.”
The case was initiated with warning notices in 2013 but was paused due to criminal proceedings by the Serious Fraud Office.
It resumed in 2020 following the conclusion of those proceedings. The FCA initially proposed a £50 million fine, which was subsequently reduced after Barclays engaged with the enforcement process.
Steve Smart, the FCA's joint executive director of enforcement and market oversight, said: “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.
It is important that listed firms provide investors with the information they need.”