Barclays fined over ‘reckless’ failure to disclose Qatar links
The Financial Conduct Authority (FCA) has hit Barclays with a £40m fine today for failing to disclose ties with certain Qatari investors as it scrambled to avert a government bailout during the financial crisis.
In a statement today, the City watchdog said the FTSE 100 lender’s conduct through during a capital raise in 2008 was “reckless and lacked integrity” and it welcomed a move by the bank to withdraw from challenging its decision in the courts.
“The events in 2008 were of national importance as banks sought emergency recapitalisation,” the FCA said in a statement. “The FCA has a primary objective to ensure market integrity. Banks should treat their obligations to the market and shareholders seriously.”
The decision follows a previous allegation from the FCA that Barclays had breached 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 on 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.
While Barclays had initially looked 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 said the bank’s 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,” he added.
Barclays said in a statement 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.”