The industry is reacting to the news today (25 November) that the FCA has fined Barclays £40m in total for its failure to disclose certain arrangements with Qatari entities in 2008.
The UK regulator said this followed Barclays’ decision to withdraw its referral of the FCA’s planned action to the Upper Tribunal.
Karl Foster, Fintech and Financial Services Partner at law firm Spencer West LLP commented: “Both parties appear to have drawn a line under the matter with the withdrawal of the appeal and acceptance of a fine on Barclays side and a reduction of the fine on the FCA’s.
“The FCA expects firms that it regulates to deal with it in an “open and cooperative” manner with an express obligation on firms to disclose anything that a regulator would reasonably expect notice.
“In addition, the FCA has a primary objective to ensure market integrity and whilst the circumstances were unprecedented during the financial crisis, nevertheless the requirement for integrity remains.
Foster further said: “This matter reminds us of the lack of accountability and sense of invulnerability of banks at that time that led to the financial crisis, LIBOR and other scandals.
“Whilst there may be sound legal reasons for Barclays not accepting the FCA’s position in its statement in this matter – as any good litigation lawyer will remind us – nevertheless the lack of humility in withdrawing the appeal takes us back to those times.”
Read the story about the fine here, published earlier today on sister brand Investment International.
