The Financial Conduct
Authority’s (FCA) fine of Barclays chief executive
James Staley, the first enforcement action taken under the
Senior Managers and Certification Regime (SMCR), could blur the
lines between integrity and due diligence. This could result in
inconsistent decisions and may raise the bar for activity that
would have otherwise resulted in dismissal on the grounds of
individuals not being fit and proper to perform their role.
Peter Wright, litigation partner at
Fox Williams, said the FCA’s final notice is
very carefully worded to enable a finding that there is a lack
of skill, care and diligence but without any suggestion that
there was an integrity breach. "In the future, this decision
may make it harder for the regulator to distinguish between
integrity and misjudgement," he said.
Staley was fined £642,430 ($866,400 approximately) for
what the FCA said was a breach of his standard of...