Barclays Capital has been fined a record $15m by the Securities and Exchange Commission (SEC) for failing to maintain an adequate internal compliance system after its acquisition of advisory business of Lehman Brothers in September 2008.
SEC said Barclays failed to adopt and implement written policies and procedures and maintain certain required books and records to prevent the other violations.
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Barclays also failed to improve its compliance program after it bought Lehman’s advisory business following Lehman’s collapse, which resulted in other violations of federal laws governing investment advisers by Barclays, the regulator added.
Julie Riewe, co-chief of the SEC enforcement division’s asset management unit, said: "Barclays failed to establish this critical compliance foundation when it acquired Lehman’s advisory business, and as a result subjected its clients to a host of improper practices and inadequate disclosures."
Also, Barclays has agreed to take on remedial measures, including hiring an independent compliance consultant to internally address the violations.
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