Barclays CEO Fined £1.8 Million and Banned from Senior Management for Reckless Misleading of the FCA

Barclays CEO Fined £1.8 Million and Banned from Senior Management for Reckless Misleading of the FCA

The FCA has fined former Barclays CEO, James Staley, £1.8 million and banned him from holding a senior management or significant influence function in the financial services industry. This follows their investigation into his involvement in sending a letter to the FCA which contained two misleading statements about his relationship with Jeffrey Epstein. Mr Staley confirmed that the letter was accurate, however the FCA found that he had misled both the FCA and the Barclays Board by not disclosing his close personal relationship with Epstein. The letter claimed that Mr Staley did not have a close relationship with Mr Epstein when in fact emails between the two showed that Mr Staley described Mr Epstein as one of his 'deepest' and 'most cherished' friends. It also stated that he had ceased contact with him well before joining Barclays, whereas in reality he had been in contact in the days leading up to his appointment as CEO. Mr Staley failed to correct these misleading statements and the FCA believes that he acted recklessly, demonstrating a lack of integrity. His behaviour breaches the standard of good judgement required of someone in his position and so the FCA has taken action to prevent him from holding any senior post in the future while relying on his not exercising such judgement. He has now referred his Decision Notice to the Upper Tribunal where he will make his case.