Release Date: 20th May 2015
To access the original FCA document, click here.
Summary
Who was fined:
- Barclays Bank Plc (Barclays)
Why the FCA fined them:
- The FCA fined Barclays £284,432,000 for significant failings in controlling business practices in its foreign exchange (FX) business from January 2008 to October 2013.
- Barclays allowed traders to engage in behaviours that prioritised the bank’s interests over those of clients, including sharing confidential information and attempting to manipulate FX rates.
- The failings extended to inadequate systems and controls over FX trading, as well as a failure to address similar issues identified in past regulatory actions.
Key Takeaways for Other Firms:
- Implement Robust Controls: Ensure robust systems and controls over all trading activities, especially in areas prone to manipulation.
- Maintain Integrity and Confidentiality: Uphold high standards of integrity by preventing the sharing of confidential client information.
- Monitor and Manage Risks: Actively monitor and manage risks related to conflicts of interest and trader conduct.
- Foster a Culture of Compliance: Embed a culture that prioritises compliance and ethical behaviour across all levels of the organisation.
- Swiftly Address Regulatory Failings: Take immediate and comprehensive actions to address any identified regulatory failings and root causes.
- Cooperate Fully with Regulators: Provide timely, accurate, and complete information to regulators to facilitate investigations and demonstrate transparency.
By adhering to these principles, firms can maintain market integrity, avoid substantial fines, and protect their reputations.
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