Barclays fined £40m over 2008 Qatar fundraising

​Barclays has been fined £40 million by the Financial Conduct Authority (FCA) over its capital-raising activities during the 2008 financial crisis, which allowed the bank to avoid relying on taxpayer funds. The FCA determined that Barclays failed to adequately disclose critical details about the £11.8 billion raised from Qatari and other sovereign investors, labeling its actions as "reckless" and lacking transparency.

This penalty stems from an investigation that began in 2013, which was delayed by criminal proceedings from the Serious Fraud Office that ultimately acquitted all defendants, including Barclays itself. In 2022, Barclays chose not to take the FCA's enforcement case to an Upper Tribunal, allowing the regulator to impose the fine, which was initially set at £50 million but reduced once the bank withdrew its appeal.

The FCA's focus was on Barclays' actions during a crucial period when the UK government injected significant capital into major banks like Lloyds and RBS to stabilize the financial system. The investigation revealed that Barclays paid substantial fees—specifically £322 million—to certain Qatari investors involved in the fundraising, a fact that was not disclosed to shareholders.

In a statement, the FCA emphasized the importance of market integrity and the obligation of banks to be transparent with their shareholders. Steve Smart, the FCA's joint executive director, noted that while Barclays' misconduct was serious, the events occurred over 16 years ago, and the bank has since undergone significant changes.

Barclays responded by expressing a desire to move past these issues, asserting that it does not agree with the FCA's findings, a sentiment that the FCA has acknowledged.