TIDMBARC TIDM96ES
RNS Number : 0236C
Barclays PLC
10 April 2017
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No 596/2014
10 April 2017
FCA and PRA investigations into Jes Staley and Barclays
Barclays PLC and Barclays Bank PLC (Barclays) announce that the
Financial Conduct Authority (FCA) and the Prudential Regulation
Authority (PRA) have commenced investigations into:
-- Jes Staley, Group Chief Executive Officer of Barclays, as to
his individual conduct and senior manager responsibilities relating
to Barclays whistleblowing programme and an attempt by Mr Staley in
2016 to identify the author of a letter that was treated by
Barclays Bank PLC as a whistleblow; and
-- Barclays Bank PLC, as to its responsibilities relating to the
attempt by Mr Staley to identify the author of the letter, as well
as Barclays systems and controls and culture relating to
whistleblowing.
The attempt by Mr Staley to identify the author of the letter
(the "matter") first came to the attention of the Barclays Board in
early 2017 as a result of a concern raised by an employee regarding
amongst other matters the adequacy of Barclays whistleblowing
procedures. The Board immediately instructed an external law firm,
Simmons & Simmons LLP, to conduct a focussed investigation into
the matter which was led by Sir Gerry Grimstone, the Deputy
Chairman and Senior Independent Director, on behalf of the Board.
The Board also promptly notified the FCA and PRA and other relevant
authorities. The principal findings of the investigation relating
to Mr Staley's involvement in the matter are set out in the annex
to this announcement.
Mr Staley has explained his actions to the Board. The
investigation by Simmons & Simmons LLP found, and the Board has
concluded, that Mr Staley honestly, but mistakenly, believed that
it was permissible to identify the author of the letter. However,
the Board has concluded that Mr Staley made an error in becoming
involved with, and not applying appropriate governance around, the
matter, and in taking action to attempt to identify the author of
the letter. The author of the letter was not identified and no
further action was taken. Mr Staley has apologised to the Board for
his error.
The Board believes that its response to the matter should be
proportionate to its serious nature. It will therefore be issuing a
formal written reprimand to Mr Staley and has decided that a very
significant compensation adjustment will be made to Mr Staley's
variable compensation award. The Board will give consideration to
the findings of the FCA and PRA investigations and the precise
amount of the compensation adjustment will be determined by the
Board once those investigations have concluded.
Barclays and Mr Staley will cooperate fully with the FCA and PRA
investigations. The Board is also commissioning independent reviews
of Barclays relevant processes and controls, including its
whistleblowing programme. The Board continues to review the
position of other employees involved in this matter.
John McFarlane, Chairman, said: "I am personally very
disappointed and apologetic that this situation has occurred,
particularly as we strive to operate to the highest possible
ethical standards. The Board takes Barclays culture and the
integrity of its controls extremely seriously. We have investigated
this matter fully using an external law firm and we will be
commissioning an independent review of Barclays processes and
controls to determine what improvements may be required.
The Board has concluded that Jes Staley, Group Chief Executive
Officer, honestly, but mistakenly, believed that it was permissible
to identify the author of the letter and has accepted his
explanation that he was trying to protect a colleague who had
experienced personal difficulties in the past from what he believed
to be an unfair attack, and has accepted his apology. Taking into
account both the circumstances of this matter and his otherwise
exemplary record since joining Barclays, including contributing
significantly to improvements in Barclays culture and controls, Jes
continues to have the Board's unanimous confidence and it will
support his re-appointment at Barclays Annual General Meeting on 10
May 2017."
Jes Staley, Group Chief Executive Officer said: "I have
apologised to the Barclays Board, and accepted its conclusion that
my personal actions in this matter were errors on my part. I will
also accept whatever sanction it deems appropriate. I will
cooperate fully with the Financial Conduct Authority and the
Prudential Regulatory Authority, which are now both examining this
matter. Our whistleblowing process is one of the most important
means by which we protect our culture and values at Barclays and I
certainly want to ensure that all colleagues, and others who may
utilise it, understand the criticality which I attach to it."
Whilst Barclays does not intend to make any further comment at
this time given the ongoing regulatory investigations, as and when
appropriate, Barclays will provide an update.
Annex
This Annex sets out the principal findings relating to Mr
Staley's involvement in the matter from the investigation conducted
by Simmons & Simmons LLP:
-- In June 2016, members of the Board received an anonymous
letter and a senior executive received another anonymous letter
raising concerns about a senior employee who had been recruited by
Barclays earlier that year. Amongst other issues, the letters
raised concerns of a personal nature about the senior employee, Mr
Staley's knowledge of and role in dealing with those issues at a
previous employer, and the appropriateness of the recruitment
process followed on this occasion by Barclays.
-- Both letters were logged by the Group Compliance function as
whistleblows and investigated by them.
-- Having been given a copy of the first letter and made aware
of the second, Mr Staley initially requested that the Group
Information Security (GIS) team attempt to identify the authors of
the letters. Mr Staley considered that the letters were an unfair
personal attack on the senior employee.
-- Mr Staley was subsequently informed that it was not
appropriate to take steps to identify the authors. Following this,
neither Mr Staley nor the GIS team took any such further
action.
-- In July 2016, Mr Staley enquired whether the whistleblowing
issue with the letters had been cleared. Following this, Mr
Staley's honestly held, but mistaken, belief was that he had
clearance to identify the author of one of the letters.
-- Thereafter, Mr Staley requested that GIS attempt to identify
the author of the first letter following which GIS contacted and
received assistance from a U.S. law enforcement agency in
identifying its author. Mr Staley was subsequently informed of this
and the results from the steps that GIS had taken.
-- However, ultimately this attempt by GIS was unsuccessful in
identifying the author and no further steps were taken to do so
after that.
- Ends -
For further information please contact:
Investor Relations Media Relations
Kathryn McLeland Tom Hoskin
+44 (0)20 7116 4943 +44 (0)20 7116 4755
About Barclays
Barclays is a transatlantic consumer, corporate and investment
bank offering products and services across personal, corporate and
investment banking, credit cards and wealth management, with a
strong presence in our two home markets of the UK and the US.
With over 325 years of history and expertise in banking,
Barclays operates in over 40 countries and employs approximately
120,000 people. Barclays moves, lends, invests and protects money
for customers and clients worldwide.
For further information about Barclays, please visit our website
home.barclays
Information regarding forward-looking statements
This announcement contains forward-looking statements within the
meaning of Section 21E of the US Securities Exchange Act of 1934,
as amended, and Section 27A of the US Securities Act of 1933, as
amended, with respect to the Barclays group. These statements are
based on the current beliefs and expectations of Barclays'
management and are subject to significant risks and uncertainties.
Actual outcomes may differ materially from those expressed in the
forward-looking statements. Factors that could impact Barclays'
future financial condition and performance are identified in our
filings with the Securities and Exchange Commission ("SEC")
(including, without limitation, our Annual Report on Form 20-F for
the fiscal year ended 31 December 2016) which are available on the
SEC's website (www.sec.gov). Subject to Barclays' obligations under
the applicable laws and regulations of the United Kingdom and the
United States in relation to disclosure and ongoing information,
Barclays does not undertake to update the forward-looking
statements to reflect the impact of circumstances or events that
may arise after the date of the forward-looking statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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