By Max Colchester
The U.K.'s Serious Fraud Office has approached Barclays PLC with
a deferred prosecution agreement as it looks to resolve a
long-running probe into how the bank secured emergency funding from
Middle Eastern investors during the financial crisis, according to
a person familiar with the matter.
The SFO launched an investigation in 2012 into whether the bank
breached disclosure obligations when raising billions of pounds
from investors including Qatar Holdings LLC in 2008. The SFO
interviewed a series of former top Barclays executives as part of a
years-long probe into the allegations, according to people familiar
with the matter.
Separately, the U.K.'s Financial Conduct Authority alleges
Barclays didn't properly disclose GBP322 million ($501 million) of
advisory fees it paid Qatar Holdings following the capital
raisings. The FCA has already imposed a GBP50 million fine on the
bank. Barclays is contesting the regulator's findings.
Qatar Holdings couldn't immediately be reached for comment.
It is unclear at this stage whether Barclays will accept the
SFO's offer of a deferred prosecution agreement, the person
said.
DPAs are a new phenomenon in the U.K., with the SFO only
acquiring the power to negotiate such agreements in February last
year. A DPA would effectively mean that Barclays accepts to be put
on probation for a defined amount of time. It would be cleared of
the alleged infraction as long as it doesn't break other rules
during the period. Barclays and the SFO would need to negotiate the
length and terms of the DPA, which would then need to be approved
by a judge. The agreement could include a fine.
The proposed DPA deal comes as both the SFO and Barclays look to
close the chapter on the long-running saga. Separately, the U.S.
Department of Justice and Securities and Exchange Commission are
also investigating whether the payments by Barclays are compliant
with the U.S. Foreign Corrupt Practices Act.
Sky News first reported the discussion of the DPA.
Write to Max Colchester at max.colchester@wsj.com
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