Context
The FCA has decided to fine former CEO of Barclays, James Staley, £1.8 million and ban him from holding a senior management or significant influence function in the financial services industry. The FCA has found that Mr Staley recklessly approved a letter sent by Barclays to the FCA, which contained two misleading statements, about the nature of his relationship with Jeffrey Epstein and the point of their last contact.
Mr Staley has referred his Decision Notice to the Upper Tribunal where he will present his case. Any findings in the Decision Notice are therefore provisional and reflect the FCA’s belief as to what occurred and how it considers his behaviour should be characterised.
Key points to note
- In perhaps a key example of a decision founded in non-financial misconduct, the FCA stated that it “cannot rely on him [Mr Staley] to act with integrity by disclosing uncomfortable truths about his close personal relationship with Mr Epstein”.
- This is clearly also a case of an individual not being open and honest with the Regulator.
- In August 2019, the FCA asked Barclays to explain what it had done to satisfy itself that there was no impropriety in the relationship between Mr Staley and Mr Epstein. In its response, Barclays relied on information supplied by Mr Staley. Mr Staley confirmed the letter was fair and accurate.
- The letter claimed that Mr Staley did not have a close relationship with Mr Epstein. In reality, in e-mails between the two Mr Staley described Mr Epstein as one of his ‘deepest’ and ‘most cherished’ friends
Next actions
None – for information and awareness.