Britain's Financial Conduct Authority (FCA) has fined Barclays £40 million for failing to properly disclose arrangements with Qatari entities during crucial fundraising efforts at the height of the 2008 financial crisis.

The penalty comes after Barclays withdrew its appeal against the regulator's findings, which had originally proposed a £50 million fine in 2022. The FCA determined that the bank's conduct in its October 2008 capital raising was "reckless and lacked integrity".

The case centres on Barclays' failure to fully disclose details of advisory fees paid to Qatari investment vehicles during emergency fundraising efforts that helped the bank avoid a government bailout. The bank raised £11.8 billion through two share sales in 2008, with the FCA alleging that Qatari investors received higher fees than those from other countries including China, Singapore and Abu Dhabi.

Steve Smart, joint executive director of enforcement and market oversight at the FCA, said: "Barclays' misconduct was serious and meant investors did not have all the information they should have had. However, the events took place over 16 years ago and we recognise that Barclays is a very different organisation today."

While agreeing to pay the reduced fine, Barclays maintained its disagreement with the regulator's conclusions. "In view of the time elapsed since the events, Barclays wishes to draw a line under the issues referred to in the decision notices and has decided not to contest the decision notices further," the bank said in a statement, adding: "Barclays does not accept the findings of the decision notices and this has been acknowledged by the FCA."

The FCA noted that none of the current Barclays board or senior management were involved in the events described in the final notices, and that recent executive leadership has made significant progress in implementing changes to the bank's systems and controls.

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