Barclays Fined GBP26 Mln For Gold Price Fixing

(RTTNews) - The Financial Conduct Authority or FCA has fined Barclays Bank Plc (BCS, BARC.L) around 26.0 million pounds for failing to adequately manage conflicts of interest between itself and its customers as well as systems and controls failings, relating to the Gold Fixing. These failures continued from 2004 to 2013.

The FCA said former Barclays trader, Daniel James Plunkett, exploited the weaknesses in Barclays' systems and controls to seek to influence that day's 3:00 p.m. Gold Fixing and profited at a customer's expense.

Also, the UK regulator has fined the individual trader 95,600 pounds and banned him from performing any function regarding any regulated activity. The regulator added that because of the trader's actions, Barclays was not obligated to make a $3.9 million payment to one of its customers, though the customer was later compensated in full.

Tracey McDermott, the FCA's director of enforcement and financial crime, explained, " A firm's lack of controls and a trader's disregard for a customer's interests have allowed the financial services industry's reputation to be sullied again." "Barclays' failure to identify and manage the risks in its business was extremely disappointing."

Both Barclays and Plunkett would settle at an early stage, qualifying for a 30% discount to their respective fines.