RegulationSep 23 2014

Barclays set to be hit with £38m fine

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Barclays is set to be fined by the Financial Conduct Authority for failing to ensure adequate protection of clients’ funds, FTAdviser understands.

According to reports, the fine is to be around £38m; a record fine for this type of misconduct.

The punishment is believed to relate to the bank’s failure to segregate clients’ asset properly and maintain adequate records, the second occasion on which Barclays has been fined for such an offence after a £1.1m penalty three years ago.

According to the reports, losses for Barclays’ clients were theoretical rather than actual.

The penalty comes just four months after the FCA hit Barclays with a £26m fine. The fine related to misconduct on the part of former Barclays trader Daniel James Plunkett.

In a 27-page final notice issued by the FCA on 23 May, the body stated that Barclays had failed to manage conflicts of interest and put controls in place to avoid Mr Plunkett influencing the price of gold in 2012.

Both Barclays and the FCA declined to comment on this morning’s reports.