Barclays fined £40m over Qatar capital raise disclosure failings

Posted by Admin November 26, 2024 World

The UK FCA fined Barclays for failing to disclose agreements with Qatari entities during its 2008 capital raise. Credit: Barclays PLC.

The UK Financial Conduct Authority (FCA) has imposed a £40m ($50.3m) fine on Barclays for failing to disclose certain agreements with Qatari entities during the bank’s capital raising efforts in 2008.

The 2008 financial crisis was a critical period for banks, which were in urgent need of recapitalisation.

The latest move comes after Barclays chose not to contest the FCA’s proposed actions in the Upper Tribunal.

In 2013, the FCA issued warning notices to Barclays, but the case was put on hold due to criminal proceedings by the Serious Fraud Office.

The case resumed after the charges against Barclays were dropped and other parties were acquitted. The FCA had initially decided on a £50m ($62.8m) penalty but has now confirmed a £40m ($50.3m) fine.

The FCA has acknowledged Barclays’ decision to withdraw its appeal to the Upper Tribunal, noting the challenging circumstances of the 2008 capital raisings.

Access the most comprehensive Company Profiles
on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free
sample

Thank you!

Your download email will arrive shortly

We are confident about the
unique
quality of our Company Profiles. However, we want you to make the most
beneficial
decision for your business, so we offer a free sample that you can download by
submitting the below form

By GlobalData

Tick here to opt out of curated industry news, reports, and event updates from Retail Banker International.

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

However, the bank stressed that it was not accepting FCA’s findings but just wants to “draw a line”.

The FCA enforcement and market oversight joint executive director Steve Smart 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.”

The FCA emphasises that maintaining market integrity is one of its core objectives, and financial institutions must take their market and shareholder obligations seriously.