The bank was due to challenge the FCA’s decision in court but dropped the appeal at the last minute.

The FCA’s action was based on findings which included that Barclays’ conduct in its October 2008 capital raising was reckless and lacked integrity.

It first issued warning notices against Barclays in 2013. The case was paused pending criminal proceedings brought by the Serious Fraud Office. It was restarted following the dismissal of proceedings against Barclays and the acquittal of the other parties.

The FCA published decision notices setting out its case against Barclays in October 2022 and Barclays chose to refer the case to the Upper Tribunal, which is independent from the FCA and hears appeals against enforcement cases. The FCA had previously decided to impose a fine of £50 million in total, which has been reduced to £40m following the decision to drop the appeal.

The regulator welcomed the decision by Barclays to withdraw the reference of this case to the Upper Tribunal, and said it recognises that this case concerns disclosure decisions made in the context of very large and complex capital raisings that took place many years ago under considerable market pressure.

Steve Smart, joint executive director of enforcement and market oversight at the FCA, said: “Barclays’ misconduct was serious and meant investors did not have all the information they should have had.

“However, the events took place over 16 years ago and we recognise that Barclays is a very different organisation today, having implemented change across the business.”

Despite deciding not to pursue an appeal, Barclays stated it does not agree with the FCA’s fine.