The Financial Conduct Authority (FCA) has made the decision to fine and ban James Staley, former CEO of Barclays, following misleading information around the nature and timing of his relationship with Jeffrey Epstein.
The FCA fined Staley £18m and banned him from holding a senior management or significant influence function in the financial services industry.
This followed the finding that the former CEO had approved a letter sent by Barclays to the FCA which contained misleading statements about his relationship with Epstein.
In August 2019, the regulater asked Barclays to explain what it had done to satisfy itself that there was no impropriety in the relationship, but the bank relied on information supplied by Staley himself.
The letter claimed that he did not have a close relationship with Epstein, and that he had ceased contact with him prior to joining Barclays, but evidence showed these claims to be incorrect.
The FCA found that there was no excuse for failing to correct these misleading statements, and that Staley was aware of the risk his relationship with Epstein posed.
Therese Chambers, joint executive director of enforcement and market oversight at the FCA, said: “A CEO needs to exercise sound judgement and set an example to staff at their firm.
“Mr Staley failed to do this. We consider that he misled both the FCA and the Barclays Board about the nature of his relationship with Mr Epstein.
“Mr Staley is an experienced industry professional and held a prominent position within financial services.
“It is right to prevent him from holding a senior position in the financial services industry if we cannot rely on him to act with integrity by disclosing uncomfortable truths about his close personal relationship with Mr Epstein.”
