Yahoo Finance Regulators propose fine for Barclays boss Jes Staley over whistleblower scandal
The UK’s financial watchdog wants to impose a fine on Barclays boss Jes Staley for breaching conduct rules when he tried to identify a whistleblower at the bank in 2016.
Mr Staley had tried to identify the author of 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.
The lender, which reported the incident to the Financial Conduct Authority (FCA) and the Bank of England’s Prudential Regulation Authority (PRA) said Mr Staley had taken measures to identify the author of the letters because he considered them to be “an unfair personal attack on the senior employee”. Mr Staley said he had not been aware of the fact that it was not permissible to identify the author of the letters. Whistleblowers are protected and are not allowed to be treated unfairly or lose their job for reporting wrongdoing.
Investigations into Mr Staley and Barclays by the Financial Conduct Authority and the Bank of England’s Prudential Regulation Authority (PRA) have now concluded, with both regulators proposing that the bank’s chief executive pay a financial penalty.
However, the bank said in a statement Friday morning: “The FCA and PRA are not alleging that he acted with a lack of integrity or that he lacks fitness and propriety to continue to perform his role as group chief executive officer.”
Mr Staley now has a period of time to review the FCA and PRA’s draft warning notices, in which they set out their reasons for the proposed fine.
The watchdogs said they will not take enforcement action against Barclays, but said the lender will be required to report to the FCA and PRA on certain aspects of their whistleblowing programmes.
