Saturday, February 19, 2011

Barclays - such a naughty bank

Barclays need a little distraction from its dubious tax affairs. Lets shift the subject over to regulatory compliance. Here are a few tasty press releases from the Financial Services agency.

FSA fines Barclays £7.7 million for investment advice failings and secures as much as £60 million in redress for customers

18 January 2011

The Financial Services Authority (FSA) has fined Barclays Bank plc (Barclays) £7.7 million for failures in relation to the sale of two funds. Barclays will contact customers and pay redress where appropriate.

Between July 2006 and November 2008 Barclays sold Aviva’s Global Balanced Income Fund (the Balanced Fund) and Global Cautious Income Fund (the Cautious Fund) to 12,331 people with investments totalling £692 million.

However, there were a number of serious failings in the way the funds were sold.

FSA fines Barclays £2.45m for failures in transaction reporting

8 September 2009

The Financial Services Authority (FSA) has fined Barclays Capital Securities Ltd and Barclays Bank PLC (Barclays) £2.45m for failing to provide accurate transaction reports to the FSA and for serious weaknesses in systems and controls in relation to transaction reporting.

FSA levies £1.12m fine on Barclays Capital for client money breaches

26 January 2011

The Financial Services Authority (FSA) has fined Barclays Capital Securities Ltd (Barclays Capital) £1.12 million for failing to protect and segregate on an intra-day basis client money held in sterling money market deposits.

Under the FSA’s client money rules, firms are required to keep client money separate from the firm's money in segregated accounts with trust status. This helps to safeguard and ring-fence the client money in the event of the firm's insolvency.

Fixed Rate Savings Bond Terms and Conditions - Barclays Bank plc


Why did we think it was unfair? We (the FSA) thought the term that allowed changes for 'any other good reason' was open-ended and therefore meant that the firm had not given a clearly defined valid reason for varying the contract. We thought that gave the firm too much discretion.

Barclays Bank Plc, trading under the name of Woolwich

As a qualifying body, we, the Financial Services Authority (the FSA), can challenge firms using terms which we view as unfair under the Unfair Terms in Consumer Contracts Regulations 1999 (the Regulations). So we review contract terms which are referred to us by consumers, enforcement bodies and consumer organisations. This has led to Barclays Bank PLC, trading under the name of Woolwich, undertaking not to use the Woolwich's terms which we consider may be unfair.

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