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FCA investigates Barclays boss over whistleblowing case

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Barclays is docking pay for chief executive Jes Staley after he broke regulations by trying to identify an internal whistleblower.

The lender has given Staley a formal reprimand and a “very significant” hit to his compensation, according to the Financial Times.

The FCA and the Prudential Regulation Authority are also investigating Staley and his employer after he tried to find out the author of a 2016 whistleblowing letter.

The letter to the Barclays board raised concerns about a senior employee at the lender and Staley’s part in their recruitment.

Staley twice asked Barclays’ information security team to identify the author. The first time he was turned down, and the second time the team tried but failed to find the author.

The Barclays board flagged the molehunt up to the regulators when it found out.

A review of the issue by law firm Simmons & Simmons found Staley “honestly, but mistakenly, believed that it was permissible to identify the author of the letter”.

According to Simmons & Simmons’ investigation, Staley thought the letters were an “unfair personal attack”.

Barclays chairman John McFarlane says Staley “continues to have the board’s unanimous confidence”.

McFarlane adds the Barclays board will recommend Staley be reappointed as chief executive at the bank’s May annual general meeting.

The level of pay Staley will lose will be set after the outcome of the regulatory investigations.

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Comments

There are 7 comments at the moment, we would love to hear your opinion too.

  1. So, the CEO tries to get round the rules but maintains the full confidence of the board? Had the whistleblower’s identity been found out I’m sure they would have not had the same “full confidence”! Another reason for not trusting bankers.

  2. Once more it really does seem as if this bank is utterly incapable of acting honestly, ethically or compliantly. No wonder it has earned the sobriquet of ‘The bentest bank in Britain’

  3. Let’s get this straight? The CEO of a multi-national bank didn’t check with his legal team or HR team if it was legal to try and identify an anonymous whistle blower! What was he going to do if he HAD found out?

    It’s little wonder the whistle blower had concerns about this gentleman’s behaviour and wanted to remain anonymous!

    And the board “retain full confidence” – no reputational damage there then? I wonder if the shareholders may have something to say on that one?

  4. Sorry….how can they be CEO of an organisation that big without knowing they can’t chase whistleblowers…beggars belief. Has he not done his competency testing?

  5. Lock him up make an example of him, this country is run by bankers hand in hand with the FCA. But then banking is the retirement home for FCA retirements.

  6. Imagine if you were a more junior employee who did this sort of breach, would the treatment be the same ………..?

  7. “honestly but mistakenly….” Really!! He must be the only Barclays employee who would dream that excuse would hold good. The 100,000 plus other staff had to pass an internal exam to prove that they understood.

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