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The Financial Conduct Authority (FCA) has said Barclays had failed to manage conflicts of interest between itself and its customers in relation to the way the price of gold is set, between 2004 and 2013.
According to the FCA, the fine surrounds the actions of Barclays trader Daniel James Plunkett:
- Mr Plunkett, was a trader on the Barclays precious metals desk on June 28 2012.
- Mr Plunkett "exploited the weaknesses in Barclays' systems and controls to seek to influence that day's 3pm gold fixing, the FCA said.
- As a result, Barclays did not have to make a 3.9 million US dollar (£2.3 million) payment to a customer, though it later compensated the customer in full.
- Mr Plunkett's actions boosted his own trading book by 1.75 million US dollars (£1.04 million), the FCA said.
- Mr Plunkett had agreed to settle at an early stage of the probe, meaning they each qualified for a 30% discount to their fines.
- The watchdog has fined him £95,600 and banned him from the industry.
The gold-fixing failings by Barclays has once again tarnished the industry's reputation, the Financial Conduct Authority said, after it fined the bank £26 million.
Its announcement focused on the behaviour of Daniel James Plunkett, who was a trader on the Barclays precious metals desk, on June 28 2012.
Barclays has been fined £26 million by the Financial Conduct Authority over failings in relation to the fixing of the price of gold.
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Barclays is being fined for manipulating the price of gold, after the Libor rate-fixing scandal and PPI insurance mis-selling.
Barclays faces another scandal after it was fined £26 million by the City watchdog over failings linked to the fixing of the price of gold.