Barclays said that it wanted to "draw a line" under the issues and did not want to contest the decision notices further, although it did not accept their findings. None of the current Barclays management were in place at the time of the capital-raising with Qatari entities. The story goes back to the 2008 financial crash.

The UK’s Financial Conduct Authority has fined Barclays £40 million ($50.4 million) for its failure not to disclose details of its capital raising with Qatari entities back in the financial crisis of 2008.

The regulator said its action followed the bank’s decision to withdraw its referral of the FCA’s planned action to the Upper Tribunal. The action was based on findings which included Barclays' conduct in its October 2008 capital raising was “reckless and lacked integrity,” the FCA said in a statement yesterday.

"Barclays’ misconduct was serious and meant investors did not have all the information they should have had. However, the events took place over 16 years ago and we recognise that Barclays is a very different organisation today, having implemented change across the business,” Steve Smart, joint executive director of enforcement and market oversight at the FCA, said. 

The FCA first issued warning notices against Barclays in 2013. The case was paused pending criminal proceedings brought by the Serious Fraud Office. It was restarted following the dismissal of proceedings against Barclays and the acquittal of the other parties.

Barclays sought to obtain capital as the financial crisis swept through markets, leading to Royal Bank of Scotland (now NatWest Group) and Lloyds Banking Group – but not Barclays – being bailed out by the UK government. As a result of not being bailed out, Barclays was also freed from government restrictions imposed as a condition of receiving such aid, such as affecting remuneration. Barclays narrowly avoided UK government intervention because it was in the process of making a deal with the Qatari state as part of efforts in June and October 2008 to raise £11.8 billion. The Qatar Investment Authority still owns 2.9 per cent of Barclays.

“None of the current Barclays board or senior management were involved in the events described in the Final Notices,” the FCA said in its statement. “The most recent executive leadership, with the support of the current Barclays board, has made significant progress in implementing changes to Barclays’ systems and controls.”

The FCA published decision notices setting out its case against Barclays in October 2022 and Barclays chose to refer the case to the Upper Tribunal, which is independent from the FCA and hears appeals against enforcement cases. The FCA had previously decided to impose a fine of £50 million in total.

“The events in 2008 were of national importance as banks sought emergency recapitalisation. The FCA has a primary objective to ensure market integrity. Banks should treat their obligations to the market and shareholders seriously,” the FCA said. 

The FCA said it welcomed Barclays’ decision to withdraw referring the case to the Upper Tribunal. 

Bank’s comment
“In view of the time elapsed since the events, Barclays wishes to draw a line under the issues referred to in the decision notices and has decided not to contest the decision notices further,” it said. “Barclays does not accept the findings of the decision notices and this has been acknowledged by the FCA. Notwithstanding the difference of view, Barclays has concluded that the interests of the Bank, its shareholders and other stakeholders are best served by withdrawing the references.”

The bank added that a provision for the FCA’s penalty was taken in 2022 and there was no “material financial impact.”