Barclays Bank has been hit by an unprecedented £284.4m FCA fine for failing to rein in errant practice in its foreign exchange business.
The Financial Conduct Authority ruled that between 1 January 2008 and 15 October 2013 the bank’s FX arm failed to implement adequate measures on its London trading floor, resulting in inappropriate sharing of information, collusion with external traders and spot currency rate manipulation.
Barclays was subsequently found to have put its own interests against that of its clients and fined £284,432,000, the largest financial penalty ever imposed by the FCA or its predecessor, the Financial Services Authority.
The FCA said that individuals in Barclays’ front office management team were both aware of and complicit in the misconduct spanning G10 and EM spot FX trading, and the transgressions had undermined investor confidence and the integrity of the UK financial system.
“This is another example of a firm allowing unacceptable practices to flourish on the trading floor,” said Georgina Philippou, FCA acting director of enforcement and market oversight.
“Instead of addressing the obvious risks associated with its business, Barclays allowed a culture to develop which put the firm’s interests ahead of those of its clients and which undermined the reputation and integrity of the UK financial system. Firms should scrutinise their own systems and cultures to ensure that they make good on their promises to deliver change.”
The fine comes less than a month after Barclays set aside £800m in anticipation of being penalised for its forex trading activity.
