The FTSE 100 bank said on Friday that the Financial Conduct Authority and Prudential Regulation Authority are alleging the CEO broke rules of individual conduct, or a requirement to “act with due skill, care and diligence”, and would face a financial penalty. The size of the fine has not yet been disclosed.
The City watchdog duo is not pursuing enforcement action against Barclays Bank PLC nor its UK retail banking arm, Barclays Bank UK, but said they would be subject to report on certain aspects of their whistleblowing programmes.
Barclays clarified the regulators are not alleging Staley “acted with a lack of integrity or that he lacks fitness and propriety” to continue on in his role as chief executive.
As such, it said the board “continues to have unanimous confidence” in Staley and plans to recommend his re-election as a director at the upcoming AGM on 1 May.
Barclays announced it was under investigation last April, following Staley’s attempts to identify the writer of an anonymous letter, questioning a recent senior appointment at the bank, was circulated around the board in 2016.
Staley asked the bank’s Group Information Security division to try to identify the source of the letter, “honestly, but mistakenly” believing this was permissible when in fact it was prohibited under whistleblower rules.
Barclays’ chairman John McFarlane said he was “personally very disappointed and apologetic that this situation has occurred”, stressing that the bank strives to “operate to the highest possible ethical standards”.
At the time the probe was announced, Barclays said Staley was facing a “very significant” pay cut.
Barclays has not yet determined the size of Staley’s pay cut but said it would figure out the appropriate adjustment once the FCA and PRA processes have concluded.
Market reaction to the news was muted, with shares up 0.37% from the previous close of 214p to 215p.
