30th Sep 2022 06:45
(Alliance News) - Barclays PLC will pay a total of USD361 million to settle matters related to an overselling of financial instruments, a US watchdog said on Thursday.
The Securities & Exchange Commission said Barclays has agreed to pay a USD200 million civil penalty, as well as prejudgement interest of more than USD161 million. The second sum was deemed as satisfied by an offer of rescission made by Barclays to investors involved.
Barclays in March admitted it sold more products to investors than it was allowed to.
The London-based bank explained that securities offered and sold under its US shelf registration statement for an approximate one-year period had exceeded a registered amount. This, the bank explained at the time, gave the purchasers of the affected securities a right of rescission.
The US SEC on Thursday said: "According to the SEC's order, as a result of this failure, [Barclays] offered and sold approximately USD17.7 billion of securities in unregistered transactions. As the SEC's order states, [Barclays] self-reported its over-issuances to regulators, provided meaningful cooperation during the SEC staff's investigation, and subsequently commenced a rescission offer."
By Eric Cunha; [email protected]
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