City regulators have handed Jes Staley , the chief executive of Barclays , a £642,430 fine for his part in a whistleblowing scandal at the bank in 2016.
The Financial Conduct Authority and the Bank of England’s Prudential Regulation Authority said in April that they would fine the lender’s boss for breaching conduct rules when he tried to identify a whistleblower.
Mr Staley tried to find out who wrote two anonymous letters , which were sent to the board and a senior executive in June 2016. The letters, considered to be whistleblowing, raised concerns about a senior employee who had been recruited by Barclays earlier that year.
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.
“Mr 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.
Mr Steward added: “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.”
The PRA’s chief executive Sam Woods said: “Protection for whistleblowers is an essential part of keeping the financial system safe and sound. Mr Staley’s behaviour fell below the standard we require, resulting in today’s fine and public censure. In addition, Barclays is now subject to special requirements to report to the PRA and FCA how it handles its whistleblowing cases in the coming years.”
The Barclays board said it had reduced the value of Mr Staley’s “variable compensation” - meaning his annual bonus - by £500,000 following the regulators’ decision.
Mr Staley said: "I have consistently acknowledged that my personal involvement in this matter was inappropriate, and I have apologised for mistakes which I made. I accept the conclusions of the board, the FCA, and the PRA, following their respective investigations, and the sanctions which they have each applied."
