FCA and PRA investigations into Jes Staley and Barclays

Barclays chief executive Jes Staley is to be stripped of his annual bonus at the same time that two regulators opened an investigation into his conduct in a whistleblowing case.

The Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) will investigate his conduct relating to an episode where he attempted to discover the identity of the person behind a whistleblowing letter to the bank.

Barclays said it will dock Mr Staley’s pay by as much as £1.3m, or all of his annual bonus.

He will also be issued with a formal written reprimand.

Mr Staley said: “I will co-operate fully with the Financial Conduct Authority and the Prudential Regulation Authority, which are now both examining this matter.

“Our whistleblowing process is one of the most important means by which we protect our culture and values at Barclays and I certainly want to ensure that all colleagues, and others who may utilise it, understand the criticality which I attach to it.”

Barclays said the attempt by Mr Staley to identify the author of the letter first came to the attention of the bank’s Board in early 2017 as a result of a concern raised by an employee regarding amongst other matters the adequacy of Barclays whistleblowing procedures.

Barclays said its Board immediately instructed an external law firm, Simmons & Simmons LLP, to conduct a focussed investigation into the matter which was led by Sir Gerry Grimstone, the Deputy Chairman and Senior Independent Director, on behalf of the Board.

The Board also notified the FCA and PRA and other relevant authorities.

In a statement , Barclays said: “The investigation by Simmons & Simmons LLP found, and the Board has concluded, that Mr Staley honestly, but mistakenly, believed that it was permissible to identify the author of the letter. However, the Board has concluded that Mr Staley made an error in becoming involved with, and not applying appropriate governance around, the matter, and in taking action to attempt to identify the author of the letter. The author of the letter was not identified and no further action was taken. Mr Staley has apologised to the Board for his error.

!The Board believes that its response to the matter should be proportionate to its serious nature. It will therefore be issuing a formal written reprimand to Mr Staley and has decided that a very significant compensation adjustment will be made to Mr Staley’s variable compensation award. The Board will give consideration to the findings of the FCA and PRA investigations and the precise amount of the compensation adjustment will be determined by the Board once those investigations have concluded.”

Barclays added that it and Mr Staley will cooperate fully with the FCA and PRA investigations. The Board is also commissioning independent reviews of Barclays relevant processes and controls, including its whistleblowing programme. The Board continues to review the position of other employees involved in this matter.

Barclays Chairman John McFarlane, said: “I am personally very disappointed and apologetic that this situation has occurred, particularly as we strive to operate to the highest possible ethical standards. The Board takes Barclays culture and the integrity of its controls extremely seriously. We have investigated this matter fully using an external law firm and we will be commissioning an independent review of Barclays processes and controls to determine what improvements may be required.”