Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Barclays may face fresh multi-million client segregation fine

Barclays may face fresh multi-million client segregation fine

Barclays is facing what could be its biggest ever regulatory penalty over client segregation failures, sources close to the discussions have reportedly told Bloomberg.

The sources said the eventual settlement could be larger than the near-£60 million the bank was fined by the Financial Conduct Authority over its manipulation of Libor rates, they added.

If correct, it would be the second time the bank has been penalised in recent years for failure to correctly segregate client funds. Barclays Capital was fined £1.1 million in 2011 for putting as much as £752 million of client money market deposits at risk over an eight-year period up to 2009.

The largest client segregation penalty in the UK previously was the £33.3 million that JP Morgan paid to the Financial Services Authority in 2010 after up to £15.6 billion was put at risk.

Barclays raised eyebrows this week with the documentation of a new debt issue, which listed 16 pages of upcoming regulatory and criminal investigations in the bank’s activity around the world.

A fresh multi-million pound charge would cast a further shadow over chief executive Antony Jenkins’ 18-month-old mission to shake up the bank’s internal culture.

Wall Street research firm Sanford C. Bernstein has estimated that the bank already faces £900 million in penalties this year to settle charges it misled investors in its ‘dark pool’ off-market exchange and manipulated currency markets.

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 WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Play Japan's slump, the umbrella revolution and the battle for Brazil

Japan's slump, the umbrella revolution and the battle for Brazil

With the arrows of Abenomics appearing to be missing their targets and political uncertainty rife in Hong Kong and Brazil we take a look at investor sentiment in this week's Investment Pulse

Your Business: Cover Star Club

Profile: The adviser that tempted Robin Minter-Kemp on board

Profile: The adviser that tempted Robin Minter-Kemp on board

It is rare to meet an impassioned individual who is willing to bang the drum for investment advisory right now

Wealth Manager on Twitter