By Ricardo Lopez
10:42 AM PST, December 26, 2013
The Financial Industry Regulatory Authority on Thursday said it fined Barclays Capital Inc. almost $4 million for what it called "systemic failures" in records retention.
FINRA, the largest independent regulator for securities firms doing business in the U.S., fined the London-based bank $3.75 million after an investigation found that the firm failed to preserve electronic records, emails and instant messages for the required minimum time of 10 years.
The group said that from 2002 to 2012, Barclays failed to save many of these electronic records — including order and trade ticket data, trade confirmations, account records and other items — in the proper format.
FINRA investigators said the issues were widespread and included all of the firm's business areas.
"Ensuring the integrity, accuracy and accessibility of electronic books and records is essential to a firm's ability to meet its compliance obligations," said Brad Bennett, FINRA's chief of enforcement and executive vice president, in a statement.
The regulators' investigation also found that from May 2007 through May 2010, Barclays did not save certain attachments to Bloomberg emails and about 3.3 million Bloomberg instant messages from October 2008 through May 2010.
As part of the settlement, Barclays did not admit or deny the charges, FINRA said.
A call seeking comment from Barclays was not immediately returned Thursday.
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