ORX News digest of the month – December 2018
- 11 January 2019
Every month the ORX News team publishes a featured digest from the ORX News Service. It's a detailed look at one of the losses reported in the media that month, and is handpicked by the team as one of the most interesting stories.
Barclays receives USD 15 million fine for shortcomings in whistle-blower function:
On 18 December 2018, Barclays was fined USD 15 million following a regulatory investigation into attempts by its CEO to identify the author of two whistleblowing letters.
New York’s Department of Financial Services (NYDFS) found that, in both June and July 2016, Barclays CEO Jes Staley personally directed the head of the firms’ Group Security to identify the author(s) of two whistleblowing letters.
According to the NYDFS, Barclays had a suitable set of whistleblowing policies and procedures in place, trained its staff annually on the subject of whistleblowing, and ran a competent, well-trained and adequately staffed unit dedicated to handing and investigating whistleblowing complaints. However, in this case, several senior executives and board members failed to follow or apply the whistleblowing policies and procedures, and failed to ensure the independence of the whistleblowing function and the importance of fostering anonymity. The NYDFS states that these actions risked jeopardising the independence of and undermined the bank's whistleblowing function.