Barclays issued with $361m penalty

Barclays has agreed to pay $361 million to the Securities and Exchange Commission (SEC) over charges relating to over-issuance of securities.

The US agency said it charged the bank in connection with the unregistered sale of an “unprecedented” amount of securities because of a failure to roll out internal controls to track these transactions in real-time.

The organisation found that as a result of the failure, Barclays offered and sold around $17.7 billion of securities in unregistered transactions.

The SEC made clear that Barclays self-reported its over-issuances to regulators and provided meaningful cooperation during its investigation.

Barclays will pay a $200 million civil penalty and an additional interest sum of around $161 million.

"This case highlights why it is essential for firms like Barclays to have robust internal controls over their offers and sales of securities," said Gurbir S. Grewal, director of the SEC’s Division of Enforcement. "While we acknowledge Barclays’ efforts to identify, disclose and remediate this conduct, the control deficiencies and the scope of the conduct at issue here was simply staggering.

"The time for other firms employing similar shelf registrations to take notice and improve their internal compliance and control functions is now."

FStech has reached out to Barclays for comment.

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