Supervisory Rules and a Two-Track Review System
Barclays’ supervisory framework required staff to report and receive approval for any outside accounts and certain trades. Normally, 93% of these accounts fed data directly to Barclays through electronic transmissions, enabling automated reviews.
But the other 7% depended on old-school paper statements mailed to Barclays — a system that buckled when pandemic disruptions shuttered offices and halted mail processing.
FINRA noted that the firm overhauled its review system in June 2022 and has since completed a full remedial examination of the backlogged statements.
A Pattern of Supervision Lapses
Tuesday’s penalty follows a $700,000 censure and fine issued last year for weaknesses in Barclays’ controls over research analyst trading — another violation of supervisory rules. The latest sanction reinforces FINRA’s message: even global financial giants cannot rely on outdated systems when regulatory obligations stay firmly in force.
