The Financial Conduct Authority (FCA) has imposed a fine of £1.8 million on Jes Staley, former CEO of Barclays and JPMorgan executive, and provisionally banned him from holding senior roles in finance. The decision came on Thursday after an investigation revealed Staley's misleading statements about his relationship with convicted sex offender Jeffrey Epstein.
Staley, who had previously described Epstein as one of his "deepest" friends in emails, had misled the regulator and Barclays' board about the nature of their relationship. According to Therese Chambers of the FCA, Staley failed to set a good example for his staff and did not exercise the sound judgement expected of his prominent position in financial services.
The misleading claims by Staley emerged in a 2019 letter to the FCA where he denied close ties with Epstein. This led to an ongoing investigation by the Prudential Regulation Authority (PRA), which ultimately resulted in Staley's immediate resignation from Barclays in November 2021.
Following the revelation, Barclays took action by suspending all of Staley’s deferred bonuses and long-term share awards during the investigation. The bank also ruled him ineligible for or to forfeit bonuses and share awards totaling £17.8 million. This decision was further solidified when it was discovered that £22 million of his bonuses were withheld due to the situation.
Chambers concluded that Staley acted recklessly and is not a fit and proper person for senior roles in finance due to his misleading conduct. The provisional ban on Staley will be pending his defense at a tribunal.
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