Barclays Slashes £330M From UK Investors' 'Dark Pool' Claim
Barclays Slashes £330M From UK Investors' 'Dark Pool' Claim
Barclays has slashed £330 million from the compensation it is offering to UK investors who lost money through its dark pool trading venue. The move comes after the Financial Conduct Authority (FCA) launched an investigation into the bank's handling of the matter.
In 2018, the FCA found that Barclays had failed to properly disclose conflicts of interest and had not taken reasonable steps to prevent the misuse of its dark pool. This led to investors losing millions of pounds.
Barclays initially offered to compensate investors for their losses, but the FCA has now said that the bank's offer is not fair and reasonable. The FCA has ordered Barclays to recalculate the compensation it is offering to investors.
Barclays has said that it is "disappointed" with the FCA's decision, but it will comply with the order. The bank has also said that it is committed to compensating investors for their losses.
What is a dark pool?
A dark pool is a private trading venue that allows investors to buy and sell shares without revealing their identities. This can be beneficial for investors who want to avoid moving the market price of a stock.
However, dark pools have also been criticized for lacking transparency and for being susceptible to abuse. In the case of Barclays, the FCA found that the bank had failed to properly disclose conflicts of interest and had not taken reasonable steps to prevent the misuse of its dark pool.
What is the FCA's investigation into Barclays?
The FCA launched an investigation into Barclays in 2018 after receiving complaints from investors. The FCA's investigation found that Barclays had failed to properly disclose conflicts of interest and had not taken reasonable steps to prevent the misuse of its dark pool.
The FCA has ordered Barclays to recalculate the compensation it is offering to investors. Barclays has said that it will comply with the order.
What are the implications of the FCA's investigation for Barclays?
The FCA's investigation into Barclays is likely to have a significant impact on the bank. The bank could face fines and other penalties from the FCA. The investigation could also damage Barclays' reputation and lead to a loss of customers.
The FCA's investigation is also likely to have a wider impact on the dark pool industry. The investigation has highlighted the lack of transparency and the potential for abuse in dark pools.
This could lead to increased regulation of dark pools and could make it more difficult for investors to use them.
