LONDON – Barclays said on Monday it had identified a single “material weakness” in its internal regulatory processes, as it re-submitted its accounts to US regulators because it had issued more structured notes than allowed due to a mistake.
The bank revealed earlier this year that it had to refill an accounting statement with the Securities and Exchange Commission, known as a Form 20-F, because it sold more structured notes than was approved in the United States.
A statement from Barclays on Monday appeared to confirm media reports that the accidental over-issue of securities was a problem because the bank had forgotten or ignored regulatory limits.
“The material vulnerabilities that have been identified are related to a weakness in control over the identification of external regulatory boundaries related to securities issues and monitoring against these limits,” Barclays said.
Barclays confirmed that it had accepted a provision of 40 540 million ($ 678 million) for the error, but said the final cost could fluctuate depending on market conditions and how many investors chose to accept the bank’s offer to buy back their securities.
The bank also said it plans to launch a delayed share buyback this week, fulfilling an earlier commitment to do so in the second fiscal quarter.
(1 = 7 0.7962 pound) (Reporting by Lawrence White and Ian Withers Editing Mark Potter)