Former Barclays chief executive Jes Staley has lost his appeal against a UK financial services ban, with a tribunal ruling on Thursday that he misled regulators about his relationship with convicted sex offender Jeffrey Epstein.

The Upper Tribunal dismissed Staley's challenge against the Financial Conduct Authority's decision to ban him from senior roles in the financial services industry, though it reduced his fine from £1.8 million to £1.1 million.

The 68-year-old American banker had argued that a 2019 letter sent by Barclays to the FCA accurately described his relationship with Epstein. The letter stated that Staley "did not have a close relationship" with Epstein and that their last contact was "well before he joined Barclays in 2015".

However, Judge Timothy Herrington ruled that "the evidence that Mr Staley had a close relationship with Mr Epstein is overwhelming". The tribunal found that both statements in the letter were inaccurate.

The case was triggered by a cache of 1,200 emails from Staley's former employer JP Morgan that revealed extensive contact between the pair. In one email exchange, Staley told Epstein "That was fun. Say hi to Snow White", to which Epstein replied asking "what character would you like next", prompting Staley to respond "Beauty and the Beast".

When questioned about these emails during the hearing, Staley said he had no recollection of them. The tribunal criticised his evidence, saying he "could be inconsistent in his answers when he felt that it would suit his case" and had "shown no remorse for his conduct".

Staley resigned from Barclays in November 2021 after the FCA began investigating his relationship with Epstein, who killed himself in prison in 2019 while awaiting trial on sex trafficking charges. The former chief executive maintained throughout the proceedings that he had no knowledge of Epstein's criminal activities.

"I am disappointed by the outcome and the time it took for this process to play out," Staley said in a statement following the ruling. He added that he was "proud of the support I gave to many individuals during that career and the strategy I developed to help Barclays when it faced immense challenges".

The FCA's joint director of enforcement, Therese Chambers, said Staley "chose to take a calculated risk that we would take his inaccurate account of his relationship with Mr Epstein at face value".

"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 means Staley is permanently banned from holding senior management positions in UK financial services. He has forfeited bonuses and share awards worth £17.8 million from Barclays and has 14 days to appeal the decision to the Supreme Court.

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