The Upper Tribunal has upheld a decision by the Financial
Conduct Authority (FCA) to ban Jes Staley, former CEO of Barclays, from senior
management roles in financial services.
The ban relates to misleading statements made to the FCA
about the nature and timing of Staley’s relationship with Jeffrey Epstein.
Emails Reveal Staley’s Hidden Relationship
Staley had approved a letter sent from Barclays to the FCA.
It claimed he did not have a close relationship with Epstein and that contact
between them had ended well before he joined Barclays.
However, email evidence reviewed by the FCA showed that
Staley referred to Epstein as one of his “deepest” and “most cherished”
friends. The two had exchanged hundreds of emails over a period of years.
Contrary to what was stated in the letter, the pair were in
contact shortly before Staley’s appointment as CEO was announced on 28 October
2015. He formally took the role in December 2015.
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FCA Fine Reduced After Barclays Decision
The FCA’s investigation also revealed that Staley remained
in indirect contact with Epstein during 2016 and 2017, after taking the
position at Barclays.
The FCA accused Staley of acting recklessly when approving
the letter. The Tribunal agreed, stating he had a clear motive to minimise the
nature of the relationship and did not expect the emails to come to light.
The Tribunal also found parts of Staley’s evidence to lack
credibility and said he had shown no remorse. He was judged to have acted
without integrity, failed to be open with the regulator, and failed to make
appropriate disclosures.
The FCA had proposed a fine of £1.8 million. The Tribunal
reduced this to £1.1 million after taking into account that Barclays had
decided not to grant Staley deferred shares he may otherwise have received.
Barclays Fined over 2008 Qatar Deal
In a separate development, Barclays
has agreed to pay a £40 million fine to the FCA for failing to disclose
£322 million in payments to Qatari investors during its 2008 capital raises.
The fine, reduced from £50 million, ends a long-running regulatory case.
Barclays withdrew its appeal and stated the current leadership was not involved
in the events.
This article was written by Tareq Sikder at www.financemagnates.com.
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