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Regulators fine Barclays CEO £650,000 and impose new controls
City regulators have fined Barclays chief executive Jes Staley almost £1m over his efforts to unmask a whistleblower at the bank.
The Financial Conduct Authority and the Prudential Regulation Authority said the American "failed to act with due skill, care and diligence" regarding an anonymous letter received by Barclays in 2016 and so have implemented new controls on how the firm handles whistleblowing.
Staley will pay £642,430 after he agreed an early settlement, so getting a 30% discount on the £918,000 fine.
In 2016, Stanley tried to identify the author of an anonymous letter received by the firm instead of keeping his distances and taking the appropriate procedures when dealing with whistleblowers.
Due to the incident, the authorities have decided to monitor and scrutinise the firm's whistleblowing systems and controls, to which Barclays accepted. This will be applied to all cases until 2020.
Mark Steward, FCA executive director of enforcement and market oversight, 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. Chief Executives must act with a high degree of care and prudence at all times.
Sam Woods, deputy governor for prudential regulation and chief executive of the PRA, said: "Protection for whistleblowers is an essential part of keeping the financial system safe and sound. Mr Staley's behaviour fell below the standard we require, resulting in today's fine and public censure.
"In addition, Barclays is now subject to special requirements to report to the PRA and FCA how it handles its whistleblowing cases in the coming years."