The Upper Tribunal has upheld the Financial Conduct Authority’s (FCA) decision to ban former Barclays chief executive Jes Staley from holding senior roles in financial services.
It ruled that he acted with a lack of integrity and provided misleading information about his relationship with the disgraced financier Jeffrey Epstein.
The ruling concludes a long-running investigation, finding that Staley recklessly approved a letter sent to the FCA that downplayed the extent of his ties with Epstein.
The letter claimed Staley did not have a close relationship with the convicted sex offender and had ceased contact well before joining Barclays.
However, the two exchanged hundreds of emails over several years, with communication continuing up to and beyond the announcement of Staley’s appointment in October 2015.
Email evidence revealed that Staley described Epstein as one of his “deepest” and “most cherished” friends, directly contradicting the official account given to the regulator.
The FCA said he was also in indirect contact with Epstein in both 2016 and 2017, well into his time as chief executive.
The Tribunal agreed with the FCA’s assertion that Staley had a motive to mislead and had no reason to believe the true extent of the relationship would later be uncovered.
It also found some of his evidence lacked credibility and noted his failure to show any remorse.
Therese Chambers, joint executive director of enforcement and market oversight at the FCA, said: “Staley chose to take a calculated risk that we would take his inaccurate account at face value. He hoped the truth would never come to light and that he would get away with it.
“Such a serious lack of integrity flies in the face of the requirements we place on those at the top.”
She added: “The Tribunal’s decision shows that we can and will act to protect the financial system by holding those in senior roles to the high standards required of them.”
The FCA had initially proposed to fine Staley £1.8m, but the Tribunal reduced this to £1.1m, noting that Barclays had already withheld deferred share awards following the FCA’s decision.
