FCA cuts Barclays fine as lender withdraws appeals over secret Qatar payments

Barclays has been fined £40 million for secret payments to Qatari institutions during the 2008 global financial crisis.

The Financial Conduct Authority had previously fined Barclays £50m as the regulator in 2022 branded the lender “reckless and lacking integrity” for failing to disclose £322m in “advisory fees” paid to a Qatari company, allegedly in exchange for £4 billion. investment.

While Barclays announced the cash injection from Qatar, it did not disclose the fees it had paid.

The FCA, which had been investigating the group since 2013, said on Monday it would now only fine Barclays £40m after the bank decided not to challenge the regulator’s findings with an appeal to the High Court.

Barclays said in a statement that while the lender “does not accept the conclusions” of the regulator, it “wishes to bring an end” to the investigation.

The bank has set aside a provision to cover the financial penalty in 2022, so it will not suffer any material financial impact.

Barclays said: “Despite the difference of opinion, Barclays has concluded that the interests of the bank, its shareholders and other stakeholders are best served by withdrawing the References.”

The FCA said it recognized that the case was “brought in the context of very large and complex capital increases which took place many years ago under considerable market pressure”.

The capital increase came at a time of “national importance”, the regulator added, with Barclays desperate to avoid a bailout in 2008, as were rivals Natwest and Lloyds.

He also noted that none of Barclays’ current board members or senior management were involved in the 2008 fundraising.

Four Barclays executives, including former boss John Varley, became the first British bankers to face criminal charges for conduct in the financial crisis era when they were taken to court in 2019 for their role in fundraising.

The FCA said: “The most recent executive leadership, supported by the current Barclays board, has made significant progress in implementing changes to Barclays’ systems and controls.”

Steve Smart, FCA deputy executive director of enforcement and market oversight, added: ‘Barclays’ misconduct was serious and meant investors did not have all the information they should have had.

‘However, the events took place more than 16 years ago and we recognize that Barclays is a very different organization today, having implemented changes across the business.

“It is important for publicly traded companies to provide investors with the information they need.”