FCA has published decision notices against Barclays plc and Barclays Bank plc, proposing a fine of £50m in relation to failure to disclose certain arrangements with Qatari entities as part of capital raising in 2008. FCA says the conduct was “reckless and lacked integrity”. Barclays has referred the notices to the Upper Tribunal, and the decision notices have no effect pending the Tribunal’s determination.
FCA said that certain Qatari entities were key investors in 2 capital raisings in 2008 and that as part of the basis of their participation, Barclays entered into advisory agreements with them involving payments to one of the Qatari entities of £322m over 3 and 5 years. FCA said the payments were calculated by reference to the Qatari demands for investing and not the value of the relevant advisory services.
Barclays disclosed in its communications about the capital raisings only one of the agreements, and did not disclose the amounts payable or the connection with the Qatari entities’ participation in the capital raisings. FCA says this would have been highly relevant information to investors, shareholders and the wider market.
The original warning notices were issued in 2013 but the case paused until the SFO resolved its proceedings against Barclays and others in 2019.