FSA fine Barclays £2.45m

by Richard Kilner

Story link: FSA fine Barclays £2.45m

The Financial Services Authority (FSA) has hit Barclays Capital Securities Ltd and Barclays Bank PLC (Barclays) with a fine of £2.45m.

The punishment has been dished out for inaccurate transaction reporting, and for weak system and controls pertaining to transaction reporting.

Accurate reporting is critical to the FSA’s role in detecting insider trader and market manipulation, and without it there is a risk of market abuse.

FSA director of markets Alexander Justham has stated that the penalty handed to Barclays is significantly higher than the typical fine for inaccurate reporting.

The reasoning behind the above average penalty is so that the fine serves as a warning to other institutions to comply with accuracy requirements, and as a reflection of the seriousness of Barclays’ breaches.

Due to Barclays co-operating fully with the FSA and settling early, a 30% discount was awarded.