Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Barclays fined £26m over gold price fix

1 Comment
Barclays fined £26m over gold price fix

Barclays Bank faces a £26 million fine after regulators found the bank had failed to adequately manage conflicts of interest in daily gold price fixing over a period of almost 10 years.

The Financial Conduct Authority (FCA) also banned and fined former Barclays trader Daniel James Plunkett who ‘exploited the weaknesses’ in the company’s system to influence the price fixing.

His actions allowed the bank to avoid making a $3.9 million (£2.31 million) payment to a customer the FCA found, while boosting Plunkett’s trading book by $1.75 million.

‘A firm’s lack of controls and a trader’s disregard for a customer’s interests have allowed the financial services industry’s reputation to be sullied again,’ said FCA head of enforcement Tracey McDermott.   

‘Plunkett has paid a heavy price for putting his own interests above the integrity of the market and Barclays’ customer. Traders who might be tempted to exploit their clients for a quick buck should be in no doubt - such behaviour will cost you your reputation and your livelihood.’

The fine related from when Barclays joined the daily gold price fixing call in 2004 up to 2013.

Plunkett, who was a director on the bank’s precious metals desk, has been fined £95,600, in addition to being banned from regulated activity.

The FCA found that he had deliberately placed orders at the lower end of the bid spectrum in order to avoid having to pay out to a customer who held Barclays-issued gold option contracts.   

Both Barclays and Plunkett agreed to settle at an early stage and so qualified for a 30% discount on fines which would otherwise have totalled £37.19 million and £136,000 respectively.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Taxicab Tenner: AXA IM's Nicolas Trindade

Taxicab Tenner: AXA IM's Nicolas Trindade

After a summer break, it is the turn of AXA Investment Manager's Nicolas Trindade to give a £10 view of how fixed income is faring.

Play Wealth Manager Olympics: the Relay

Wealth Manager Olympics: the Relay

In the final round of the Wealth Manager Olympics, our intrepid athletes team up for the relay.

Play Wealth Manager Olympics: the Shot Put

Wealth Manager Olympics: the Shot Put

After busting a gut in the 100m sprint, our wealth manager Olympians displayed their brute strength in the shot-put.

Read More
Your Business: Cover Star Club

Profile: gearing up for the shift from consolidation to start-ups

Profile: gearing up for the shift from consolidation to start-ups

‘I think the industry is evolving rapidly, but not necessarily as a whole,’ says the head of recently launched Charles Nicholson AM

Wealth Manager on Twitter