UK: Barclays faces £38m fine over funds

Barclays is set to be hit with a �38 million fine from the City regulator today over its failure to

Barclays is set to be hit with a �38 million fine from the City regulator today over its failure to provide adequate protection for its clients funds. - Credit: PA

Barclays is set to be hit with a £38 million fine from the City regulator today over its failure to provide adequate protection for its clients’ funds.

The reported penalty from the Financial Conduct Authority (FCA) will be one of the biggest for a non-Libor rigging offence in City history and comes three years after Barclays was fined £1.1 million for similar matters.

Sky News said the misconduct charge will relate to multiple failings in Barclays’ investment banking division between 2007 and 2012, prior to the appointment of Antony Jenkins as the bank’s group chief executive.

The crackdown by regulators stems from a drive to ensure banks separate clients’ funds from their own because of the complexity of unwinding major lenders in the event of insolvency.

JP Morgan was fined £33 million for similar misconduct in 2010.

Two years ago, Barclays paid £290 million to settle claims by UK and United States regulators over the manipulation of Libor and Euribor interbank lending.

It is currently contesting charges in New York that it misled large institutional investors in the United States by falsely telling them it was taking measures to protect them from predatory high-frequency traders.

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And the Serious Fraud Office is looking at Barclays’ dealings with Qatari officials during a cash call in the banking crisis of 2008.

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