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View the article online at http://citywire.co.uk/wealth-manager/article/a652186

Barclays wealth COO exits after 'out of control' claim in secret report

by Dylan Lobo on Jan 21, 2013 at 07:59

Barclays wealth COO exits after 'out of control' claim in secret report

Reports say the chief operating officer at Barclays wealth arm has left after he binned a report exposing cultural flaws at the arm.

According to the Mail on Sunday, Andrew Tinney has left the firm after confessing to misleading the firm’s management about the existence of the report compiled by consultancy Genesis Ventures. It is estimated his pay packet was in the region of £4-£5 million a year.

The paper claims the news has led chief executive Antony Jenkins to warn staff to improve their ethical code or pack their bags.

The Genesis report was uncovered by a whistleblower, who told form chairman Marcus Agius about the ‘secret’ audit. This triggered an inquiry carried out by law firm Simmons and Simmons.

It is understood the role played by Tom Kalaris (pictured), head of the business, is also being investigated.

The Barclays wealth board, which included Kalaris and Tinney, called in Genesis after regulators questioned irregularities within the division. This subsequently sparked a follow up ‘cultural audit’ recommending a number of proposals after Genesis identified several areas which needed attention.

Genesis was concerned by the number of ‘disenchanted managers’ and concluded the business was ‘out of control’ and had bred a culture of fear and intimidation, according to the Mail. It also said the bank was hostile to complying with banking regulations and ignored or buried problems.

Tinney is alleged to have kept the report secret because he regarded it as an 'uncalibrated' input into changes at Barclays Wealth.

In a statement in response to the allegations Barclays said: 'Antony Jenkins acknowledged clearly last week in a letter to all 140,000 colleagues in Barclays that transformation of the bank's culture is imperative if Barclays is to achieve its objective of becoming the "go-to" bank, and he laid out a strong plan for effecting that change.

'Independent reports, like the one commissioned in early 2012 for Barclays Wealth in America, are intended to identify areas where change is required and to recommend remedial steps. These types of exercise never result in comfortable reading, but we have been, and will, remain absolutely committed to taking the necessary steps to address the issues raised.'

8 comments so far. Why not have your say?

Reg

Jan 21, 2013 at 08:47

Great article

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Hicks

Jan 21, 2013 at 10:07

This will be an interesting test for the Jenkins regime. Will Tinney just be a scapegoat or will he really change the culture?

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Teddy

Jan 21, 2013 at 11:35

Excellent article. Barclays should stick to what they are good at which is - let me think - not very much.

It's a case of trying to be all things to all men and not being very good at any of them. If you want Wealth Managed go to Coutts, Adam & Co or even better Duncan Lawrie.

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Anonymous 1 needed this 'off the record'

Jan 21, 2013 at 13:25

A case of an old dog not learning new tricks. Still, if you've had £4-5m a year to play with I guess unemployment wouldn't be quite as scary as for the rest of us...

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Anonymous 2 needed this 'off the record'

Jan 21, 2013 at 14:58

Unsurprising to see Tom Kalaris' linked with this. As a former employee of Barclays Wealth, I recall Mr Kalaris attitude as "I only care about three things, revenue, revenue and revenue, and I don't pay anybody to be f***** nice".

This is the true nature of the Barclays cutlure....bottom line growth at any cost.

I wish Mr Jenkins luck with turning Barclays around....actually no I don't, I couldn't give a monkeys!!

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Anonymous 3 needed this 'off the record'

Jan 21, 2013 at 15:09

" Management have created a culture of dominance and fear that has removed escalation of issues [ the reporting of concerns up the management chain ] and created a siloed organisation with serious flaws. Issues do not flow up but are buried, stopping any solution ever coming to light "

Above is quoted in the Mail on Sunday article and is spot on. Staff afraid to leave the office until King Kalaris has gone home. If Jenkins truly wants to know what is going on he should speak to all the Private Bankers on the front line who carry the sales targets and who carry the Can if we don't deliver.

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Financialplanner2012

Jan 21, 2013 at 16:28

Well, at least they've now got an ace compliance bod to sort things out.

Oh, I forgot ...... it's Hector Sants. Well, in that case, they're screwed.

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Fundador

Jan 29, 2013 at 16:36

Been there, seen it, didn't like it, voted with my feet. Not as rich as I might have been, but then I don't get my kicks from acting superior and ordering people about. The real bonus is not having to associate with the likes of Kalaris. RIP.

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