In addition, due to its failure to establish any internal control to track the amount of securities that were offered or sold on a real-time basis, beginning on or around January 28, 2021, BBPLC offered and sold securities in excess of what was registered on the 2019 Shelf.
Source: www.sec.gov/litigation/admin/2023/34-97221.pdf
- On September 29, 2022, the Commission issued a settled cease-and-desist order (the “Order”) 1 against Barclays Bank PLC (“BBPLC”) for violating Sections 5(a) and 5(c) of the Securities Act of 1933, and against Barclays PLC (“BPLC’) and BBPLC (collectively, the “Respondents”) for violating Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B), of the Securities Exchange Act of 1934 (“Exchange Act”) and Rules 12b-20, 13a-1 and 13a-15(a) promulgated thereunder.
- In the Order, the Commission found that BBPLC failed to put into place any internal control around the real-time tracking of securities being offered or sold off of its Commission registered shelf registration statement.
- As a result of this failure, BBPLC offered and sold an unprecedented amount of securities—cumulatively totaling approximately $17.7 billion—in excess of what it had registered with the Commission, in violation of Sections 5(a) and 5(c) of the Securities Act.
- In connection with the over-issuances and internal control failure, BPLC and BBPLC restated their year-end 2021 audited financial statements filed with the Commission.
- The Commission ordered the Respondents to pay a $200,000,000 civil penalty to the Commission.
- The Respondents have paid $200,000,000 in accordance with the Order.
- The Division of Enforcement now recommends that a Fair Fund be established, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so that the $200,000,000 civil penalty collected from the Respondents can be distributed for the benefit of the harmed investors.
Order:www.sec.gov/litigation/admin/2022/33-11110.pdf
In addition, due to its failure to establish any internal control to track the amount of securities that were offered or sold on a real-time basis, beginning on or around January 28, 2021, BBPLC offered and sold securities in excess of what was registered on the 2019 Shelf.
TLDRS:
Administrative Proceedings for Barclays PLC and Barclays Bank PLC: SEC creates fund for the $200 million fine Barclays received for selling “an unprecedented amount of securities—cumulatively totaling approximately $17.7 billion—in excess of what it had registered with the Commission.”
In addition, due to its failure to establish any internal control to track the amount of securities that were offered or sold on a real-time basis, beginning on or around January 28, 2021, BBPLC offered and sold securities in excess of what was registered on the 2019 Shelf.