Release Date: 11th May 2018
To access the original FCA document, click here.
Summary
The Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) have fined James Staley, Chief Executive of Barclays Group, £642,430 for failing to act with due skill, care, and diligence in response to an anonymous whistleblowing letter received by Barclays in June 2016. In addition, Barclays is now subject to enhanced reporting requirements regarding its whistleblowing systems and controls.
Staley attempted to identify the author of the anonymous letter, which contained allegations against him, thereby breaching the standard of care expected of a Chief Executive. He failed to maintain an appropriate distance from the investigation, did not consult with whistleblowing experts within Barclays, and did not seek confirmation that his actions were permissible. This conduct was found to undermine confidence in Barclays’ whistleblowing procedures, although it did not constitute a breach of integrity.
Key Takeaways for Other Firms:
- Maintain Impartiality: Ensure that senior managers maintain an appropriate distance from investigations in which they have a conflict of interest.
- Consult Experts: Always consult with internal experts and seek confirmation when handling sensitive whistleblowing cases.
- Robust Whistleblowing Systems: Develop and maintain robust whistleblowing systems and controls that protect the anonymity and integrity of the process.
- Regular Reporting: Implement regular reporting mechanisms to regulators regarding the handling of whistleblowing cases.
- Training and Awareness: Provide comprehensive training to all employees on whistleblowing processes and protections.
In conclusion, the fine and special requirements imposed on Barclays underscore the importance of adhering to high standards of care and diligence in handling whistleblowing cases. Firms must ensure their whistleblowing systems are robust and transparent, with senior managers upholding the highest ethical standards to maintain trust and integrity within the financial system.
