The UK financial watchdog found that the British bank failed to disclose the payments made as part of the capital raisings or their connection to the Qatari entities’ participation in the capital raisings held in 2008

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Barclays fined £50m by the UK Financial Conduct Authority. (Credit: Barclays PLC)

The UK Financial Conduct Authority (FCA) has imposed a fine of £50m on Barclays for allegedly failing to disclose certain agreements reached with Qatari entities as part of its capital raisings announced in 2008.

The UK financial watchdog found that the British bank failed to disclose the payments made as part of the capital raisings or their connection to the Qatari entities’ participation in the capital raisings held in 2008.

According to the FCA, the disclosure of payments would have been highly relevant information to the shareholders and investors, in a situation where the costs of the deal were already seen as highly expensive.

The capital raisings were held at the time of the 2008 financial crisis and were subject to intense market and public scrutiny.

The bank has appealed the FCA’s decision to the upper tribunal for further consideration.

FCA enforcement and market oversight executive director Mark Steward said: “At the height of the financial crisis in October 2008, Barclays paid hundreds of millions of pounds in fees to certain Qatari investors so that they would contribute new capital.

“Barclays did not inform the market and shareholders about these matters as required. Barclays’ failure to disclose these matters was reckless and lacked integrity and followed an earlier failure to disclose fees paid to Qatari investors in June 2008.

“There was no legitimate reason or excuse for failing to disclose these matters, certainly no basis for doing so because of the financial crisis. Due transparency is always critical to financial markets, especially in times of market or financial stress. These findings by the FCA will now be considered by the Upper Tribunal.”

The Authority initially issued warning notices against the bank in 2013.

The investigation was put on hold while the criminal proceedings brought by the Serious Fraud Office against Barclays and others were being resolved. Following the conclusion of those proceeding, the investigation was reopened in 2020.