Barclays fined GBP 40 mln by FCA over 2008 Qatari deal disclosure failures

This penalty follows Barclays' decision to withdraw its appeal to the Upper Tribunal against the FCA's enforcement action. The FCA had determined that Barclays' conduct in the October 2008 capital raise was reckless and lacked integrity.

The FCA initially issued warning notices against Barclays in 2013. However, the case was paused due to criminal proceedings led by the Serious Fraud Office, which were later dismissed. After the acquittal of all related parties, the FCA resumed its investigation, publishing decision notices in October 2022.

Barclays initially contested the FCA's findings, referring the matter to the Upper Tribunal. The regulator had originally proposed a GBP 50 million fine but later settled on the final penalty of GBP 40 million after the appeal was withdrawn.

Context of the 2008 capital raising

The events in question occurred during a period of financial instability when banks sought emergency recapitalisation to maintain operations. Barclays' capital-raising efforts involved complex and high-pressure decisions that have since been scrutinised for their lack of transparency.

In 2008, the global financial crisis plunged markets into chaos, forcing banks worldwide to seek emergency capital to avoid collapse or reliance on government bailouts. This unprecedented period of instability was marked by a loss of investor confidence, collapsing asset values, and heightened regulatory oversight. Many institutions, including major banks, were forced to recapitalise quickly to restore solvency and maintain operations amid fears of widespread financial contagion.

Barclays distinguished itself by opting to secure private funding rather than accepting public bailout funds, which would have placed it under stricter government control. The bank raised GBP 7.3 billion through complex agreements with Qatari entities, a decision that sparked controversy. While this move allowed Barclays to maintain independence, it drew significant scrutiny due to its opaque nature and the substantial sums involved. Questions arose about the lack of transparency in these arrangements, which later became the focus of regulatory investigations and legal proceedings.The FCA highlighted the importance of market integrity, emphasising that financial institutions must provide complete and accurate information to investors and shareholders.

Regulatory response

This case underscores the FCA’s role in holding firms accountable for past misconduct, even when significant time has passed. The regulator acknowledged that Barclays has undergone substantial organisational changes since 2008, reflecting improvements in governance and compliance.

By concluding this enforcement action, the FCA reinforces the importance of transparency and integrity in financial markets, particularly during critical moments of economic uncertainty.