FSA Had Accounting Concerns With Barclays

It has been revealed as part of the ongoing Libor investigation that in a letter to the chairman of Barclays Bank, Marcus Agius, the FSA raised concerns about Barclays’ approach to interpreting rules and regulations, citing accounting and tax issues.

Letters between Mr Agius and the FSA have been published as part of the evidence within the Libor investigation, and the Treasury Select Committee have heard how in a letter from April this year, FSA chairman Lord Turner revealed FSA’s concerns.

Within the letter, Lord Turner raised concerns of the “cumulative impression created by a pattern of behaviour over the last few years” where the FSA believed the bank often appeared to be using complex structures or arguments which were at the aggressive end of interpretation of the relevant rules and regulations.

The letter goes on to cite examples illustrating its concerns, with Lord Turner questioning the bank’s tax management, with Lord Turner, saying in the letter: “But as I know you recognise, and whatever the extent of advice which Barclays received in advance, the net impact has clearly been unfavourable to the degree of external trust in Barclays’ approach to issues such as tax, regulation and accounting issues.”

Bradford Accountant Ian Gill offers a range of accounting and tax advice to owner-managed businesses, sole traders and individuals.