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UK regulators fine Barclays CEO Staley over whistleblowing case

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UK regulators fine Barclays CEO Staley over whistleblowing case

The U.K. Financial Conduct Authority and Prudential Regulation Authority have fined Barclays PLC CEO Jes Staley a total of £642,430 in relation to his attempts to unmask a whistleblower.

The regulators said Staley "failed to act with due skill, care and diligence" in his handling of an anonymous letter received by Barclays in June 2016. The letter, which claimed to be from a Barclays shareholder, had raised concerns about a senior executive whom Staley had recruited earlier that year.

The FCA imposed a £321,200 fine on Staley, while the PRA imposed the remaining £321,230. The fine took into account the fact that Staley had settled at an early stage, the regulators noted.

The FCA and the PRA are also requiring Barclays to annually report details on how it handles whistleblowing cases, including those involving allegations made against the bank's senior managers. The reports must include personal testimonies from senior managers responsible for the relevant systems and controls. These measures will apply to all whistleblowing cases until the end of 2020.

In a statement, Barclays said its board has decided to reduce the awarded value of Staley's variable compensation for 2016 by £500,000 in relation to the matter.

"I have consistently acknowledged that my personal involvement in this matter was inappropriate, and I have apologized for mistakes which I made. I accept the conclusions of the board, the FCA and the PRA following their respective investigations and the sanctions which they have each applied," Staley said.

The whistleblowing issue is the first case brought by the FCA and the PRA under the U.K. senior manager regime, the regulators said.