Barclays fined 26m pounds over gold price setting

23rd May 2014 09:05

British financial watchdogs have slapped a 26m pound fine on banking group Barclays for alleged failings linked to setting of gold prices.The Financial Conduct Authority (FCA) said in a statement that it was fining Barclays £26,033,500 "for failing to adequately manage conflicts of interest between itself and its customers as well as systems and controls failings, in relation to the Gold Fixing. These failures continued from 2004 to 2013."The FCA said the fine was linked to actions on June 28th 2012 by former Barclays trader Daniel James Plunkett, who the FCA said exploited weaknesses in Barclays' systems and controls to seek to influence that day's 15:00 Gold Fixing and thereby profited at a customer's expense.Barclays is one of four banks that currently sets a benchmark price of the precious metal twice a day.Barclays said in a statement that it had reached a settlement with the FCA, saying the regulator had acknowledged that Barclays brought the conduct of the former trader promptly to the attention of its predecessor, the Financial Services Authority and that the bank also fully co-operated with the FCA's investigation.It added that the FCA had acknowledged that it had committed significant resources to enhancing its systems and controls in relation to the Gold Fixing, as well as in relation to other reference rates.Barclays Chief Executive Antony Jenkins said: "We very much regret the situation that led to this settlement. Barclays has undertaken a significant amount of work to enhance our systems and controls and is committed to the highest standards across all of our operations."While there is much more to do to achieve the deep-rooted cultural change we embarked upon at the start of 2013, Barclays today has significantly changed for the better. We are committed to remain focused on delivering on this agenda, underpinned by our purpose and values. These situations strengthen our resolve to improve."PW