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BARCLAYS chief executive Jes Staley was slapped with a £642,430 fine by the Financial Conduct Authority (FCA) today for his attempt to unmask a whistleblower.
The penalty was imposed by the FCA and the Prudential Regulation Authority, which concluded that he failed to “act with due skill, care and diligence” by trying to identify the author of a letter sent to Barclays in 2016 which claimed to be from a shareholder.
The letter contained a number of allegations, some of which related to Mr Staley.
Regulators said that Mr Staley should not have tried to investigate the letter himself because there was a risk he would not be impartial when deciding how to respond.
Regulators said the bank’s group compliance team should have been left to deal with the letter without the chief executive getting in the way.
The City watchdog said his actions showed “serious errors of judgement.”
The fine is 10 per cent of Mr Staley’s immense annual income, though by settling early he escaped a possible £917,800 sanction.
FCA’s Mark Steward 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.”
The regulators are forcing the bank to report on how it handles future whistleblowing cases. Senior managers will be required to update the watchdog on their systems and controls every year.”