Connect with us

Hi, what are you looking for?

Economy

Barclays fined £40m by FCA over disclosures related to Qatar dealings

Investing.com — The UK’s financial regulator, the Financial Conduct Authority (FCA), has imposed a £40 million fine on Barclays (LON:BARC) over its handling of disclosures related to a 2008 capital raising deal with Qatari investors.

The FCA’s penalty stems from the bank’s conduct during a time of severe financial stress when major banks sought emergency recapitalization amid the global financial crisis.

The case dates back to October 2008, when Barclays raised vital capital from Qatari investors to strengthen its financial position.

The FCA found that Barclays’ conduct during this process was reckless and lacked integrity, meaning the investors did not receive crucial information they should have had at the time.

This led to concerns about the transparency of the deal and whether the bank had fully disclosed material details to shareholders.

The FCA initially issued warning notices against Barclays in 2013, but the case was paused while the Serious Fraud Office pursued criminal charges against the bank and other parties involved in the transaction.

However, when the SFO’s case was dismissed and the other parties were acquitted, the FCA resumed its proceedings. In October 2022, the regulator issued decision notices outlining its case, deciding to impose a £50 million fine on Barclays for the misconduct.

Barclays chose to challenge the FCA’s decision, referring the case to the Upper Tribunal, which is independent of the FCA and reviews appeals in enforcement cases.

However, in a shift, the bank recently decided to withdraw its appeal, acknowledging the seriousness of the allegations but recognizing the changes Barclays has made since the events of 2008.

The FCA has expressed its approval of Barclays’ decision to withdraw the appeal, highlighting that the case underscores the importance of upholding market integrity, especially in complex financial dealings.

“’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,” said Steve Smart, the FCA’s enforcement director.

This post appeared first on investing.com

You May Also Like

Investing

Fisker (NYSE: FSR) stock price has been one of the best-performing electric vehicle (EV) stocks this week even as Tesla slumped. The shares jumped...

Investing

Newmont (NYSE: NEM) reported mixed financial results even as the price of gold approached its all-time high. In all, the company’s earnings per share...

Investing

The Fox Corporation (NASDAQ: FOX) stock price has been under pressure as investors come to terms with the abrupt firing of Tucker Carlson. The...

Investing

NatWest (LON: NWG) share price rose sharply, helped by the strong results from Barclays. The stock jumped to a high of 274.8p, which was...




Disclaimer: Oldamericanbroker.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the-company.


Copyright © 2024 Oldamericanbroker.com