Earnings, forex probe fines weigh on UK's FTSE 100

* FTSE 100 falls 0.2 pct

* Capita (LSE: CPI.L - news) , Sainsbury lose ground after updates

* G4S (LSE: GFS.L - news) rises after posting higher revenues

* Barclays (LSE: BARC.L - news) falls after not being part of FX probe settlement (Adds detail, quotes, updates prices)

By Alistair Smout

EDINBURGH, Nov 12 (Reuters) - Britain's top equity index fell on Wednesday, hit by disappointing corporate updates and by a decline in bank shares after regulators imposed fines to settle allegations of foreign exchange malpractice.

Outsourcing company Capita slid 6.4 percent, the top FTSE 100 faller, with traders citing concerns about a possible slowdown in its order pipeline, even though Capita said it was on track for at least 8 percent organic growth for the full year.

"The source of dented sentiment though appears such big movement in the bid pipeline, down 30 percent to £4.1bn from last year," said Mike van Dulken, head of research at Accendo Markets. "Pipeline replenishment has begun but much work to do."

Outsourcer and security group G4S bucked the broader market downturn, gaining 4.1 percent after it agreed to sell its U.S. government solutions business and posted a rise in underlying revenues.

Retailer J Sainsbury fell 3.2 percent after it threw down the gauntlet to larger rival Tesco (Xetra: 852647 - news) , taking a hit on profits and the dividend to fund lower prices in a latest escalation of the British supermarket battle.

The blue-chip FTSE 100 index, which had risen for the last five sessions in a row, declined by 0.2 percent to 6,613.87 points by 1101 GMT.

A 0.7 percent fall at HSBC and a 1.6 percent decline at Barclays combined to take the most points off the FTSE 100.

Global regulators imposed penalties totalling $3.4 billion on five major banks, including UBS (NYSEArca: FBGX - news) , HSBC and Citigroup (Swiss: C.SW - news) on Wednesday, in a landmark settlement over allegations of price fixing in the foreign exchange market.

A year-long probe has put the largely unregulated $5 trillion-a-day market on a tighter leash, with dozens of dealers suspended or fired.

Barclays, a major foreign exchange market player, had been expected to be part of the settlement but the FCA regulatory body said its probe into the British bank was continuing.

"The fact that Barclays is not part of (the settlement) is a negative surprise, which is why the shares are being impacted," said Securequity sales trader Jawaid Afsar. (Additional reporting by Sudip Kar-Gupta; Editing by Gareth Jones)