Barclays Pays $2.8M Fine for Customer Confirmation Non-Compliance

Barclays accepted a censure order imposed by the US Financial Industry Regulatory Authority (FINRA) for non-compliance with customer confirmation and related supervision rules as well as having agreed to pay a penalty of $2.8 million.

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According to the regulatory body‘s order, the multinational bank violated the mandatory rules from November 2008. It sent customers around 270 million confirmations with inaccurate disclosure of execution capacity, the customer’s price, the market center of execution and the trade execution price.

The failure was the result of 11 underlying issues that include technological glitches, drafting errors and a misunderstanding of regulatory guidance. All of these issues have remained undetected for at least five years.

Additionally, the banking giant had no supervisory system to review the accuracy of its confirmations from at least November 2008 till March 2020. Additionally, there is an unreasonable supervisory system in place from April 2020 until now.

Moreover, the order stated that Barclays was aware of the multiple systemic issues resulting in inaccurate confirmation from mid-2017, but the issues still persisted.

A Repeat Offender

Despite Barclays reputation, it has faced multiple regulatory fines over the years. Earlier this year, FINRA slapped the bank with a $350,000 penalty for lapses in market access controls, while the FCA imposed another £783,800 fine for failings in oversight in its relationship with Premier FX.

Also, Barclays paid hundreds of thousands of dollars to FINRA and other US market overseers for other multiple lapses.

However, Barclays is not the only capital market player to face such monetary penalties. Furthermore, FINRA slapped a $9 million penalty on National Securities Corp last week for multiple cases of misconduct.

UBS, another major name in the wealth management and banking industry, recently settled fraud charges brought against it by the SEC paying $25 million for marketing and selling of a complex investment strategy.