BCS Barclays PLC

By Max Colchester

LONDON--U.K. regulators have begun an investigation into Barclays PLC (BARC.LN) Chief Executive Jes Staley over his attempts to unmask a whistleblower who raised questions over one of the bank's hires.

The U.K.'s Prudential Regulation Authority and Financial Conduct Authority are probing both Mr. Staley and the bank over its treatment of whistleblowers after Mr. Staley tried to identify the source of an anonymous letter which criticized one of his hires, Barclays said in a statement Monday. The bank added that it had issued a formal reprimand to Mr. Staley and will make a "significant" cut to his bonus. It is also conducting its own review into Barclays's controls.

"I have apologized to the Barclays board, and accepted its conclusion that my personal actions in this matter were errors on my part," Mr. Staley said in a statement.

In June 2016, Barclays' board and a senior executive received anonymous letters raising concerns over someone recruited by Mr. Staley earlier that year. Mr Staley initially requested that the security team try to identify the authors of the letters, believing the attacks were unfair. He was told he wasn't permitted to. However in July he followed up the request and the security services received help from a government authority. The whistleblower's identity was never revealed. Barclays said an investigation into Mr. Staley's actions concluded, that he honestly, but mistakenly, believed that it was permissible to identify the author of the letter.

The issue was flagged to Barclays board in early 2017. The board then commissioned its own probe into the matter and highlighted its findings to the U.K. regulators.

Since his arrival in late 2015 Mr. Staley has overhauled the bank's management team bringing in a series of new executives. Many of them were from his alma mater J.P. Morgan Chase & Co. He has replaced the banks chief risk officer, chief operating officer and the head of the lender's investment bank.

Barclays board said in a statement that they support Mr. Staley's re-appointment at the bank's annual shareholder meeting in May.

Write to Max Colchester at max.colchester@wsj.com

(END) Dow Jones Newswires

April 10, 2017 03:09 ET (07:09 GMT)

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