The UK’s Financial Conduct Authority (FCA) and Prudential Relegation Authority (PRA) have jointly fined the CEO of Barclays £642,430 for his mishandling of a whistleblower at the British-based bank.
In a joint statement issued this morning, the two regulators announced that James Staley will be fined for failing to “act with due skill, care and diligence in the way he acted in response to an anonymous letter received by Barclays in June 2016.”
The FCA) and PRA together fined Staley a total of £642,430. Barclays is also now subject to special requirements by which it must report annually to the regulators detailing how it handles whistleblowing, with personal attestations required from those senior managers responsible for the relevant systems and controls.
Mark Steward, FCA executive director of enforcement and market oversight, said: “Given the crucial role of the Chief Executive, the standard of due skill, care and diligence is more demanding than for other employees.
“Staley breached the standard of care required and expected of a chief executive in a way that risked undermining confidence in Barclays’ whistleblowing procedures. Chief Executives must act with a high degree of care and prudence at all times. Whistleblowers play a vital role in exposing poor practice and misconduct in the financial services sector. It is critical that individuals are able to speak up anonymously and without fear of retaliation if they want to raise concerns.”