Barclays fined £26m for gold price fixing

clock

The Financial Conduct Authority (FCA) has fined Barclays £26m for gold price fixing.

The fine relates to June 2012, when Barclays trader Daniel Plunkett exploited a weakness in the bank's systems and controls to influence the daily gold fixing, a mechanism introduced in 2004 to enable customers to buy gold at a single fixed price.

As a result of his actions, Barclays was not obligated to make a $3.9m payment to its customer, although it later compensated the customer in full. Plunkett's actions boosted his own trading book by $1.75m.

The FCA has fined Plunkett £95,600 and banned him from performing any function in relation to any regulated activity.

Tracey McDermott, FCA director of enforcement and financial crime, said: "A firm's lack of controls and a trader's disregard for a customer's interests have allowed the financial services industry's reputation to be sullied again.

"Plunkett has paid a heavy price for putting his own interests above the integrity of the market and Barclays' customer.

"Traders who might be tempted to exploit their clients for a quick buck should be in no doubt - such behaviour will cost you your reputation and your livelihood."

McDermott added the FCA is insisting other banks investigate their own reference rate and benchmark operations.

 

More on Investment

Stories of the week: FCA, Cash ISAs, and AIM

Stories of the week: FCA, Cash ISAs, and AIM

FCA to cut down on regulation; Cash ISA 'hoarding'; AIM could thrive alongside PISCES

Sarka Halas
clock 28 March 2025 • 1 min read
Funds to Watch panel: Fund selection leaders on manager turnover, boutiques and SDR

Funds to Watch panel: Fund selection leaders on manager turnover, boutiques and SDR

Key issues for selection teams

Katrina Lloyd
clock 27 March 2025 • 10 min read
Partner Insight: Robeco Active Quant - How to target alpha today

Partner Insight: Robeco Active Quant - How to target alpha today

Robeco
clock 27 March 2025 • 5 min read
Trustpilot