Barclays Hires Former FSA Boss Hector Sants
Barclays has hired the former chief executive of the Financial Services Authority (FSA), Hector Sants, as its head of compliance.
The bank's interest in Mr Sants, which was exclusively revealed by Sky's City Editor Mark Kleinman last week, emerged soon after news that accounting firm Deloitte had held talks with him over the prospect of a new job.
Kleinman said then that taking a Barclays role would be seen as significantly more controversial than a move to Deloitte, given the bank's involvement in the Libor-fixing scandal this year.
Mr Sants stepped down from the FSA in June, the same month in which the regulator fined Barclays £59.5m for manipulating the interbank borrowing rate Libor.
In September, Mr Sants released correspondence with Barclays to Andrew Tyrie, chairman of the Treasury Select Committee, in which it emerged that he had raised profound concerns about the culture and governance arrangements at Barclays when Bob Diamond was appointed as the bank's chief executive in 2010.
Kleinman learned that Antony Jenkins, who replaced Mr Diamond as CEO, was keen to recruit Mr Sants to bolster the status of Barclays' compliance and regulatory oversight functions and make them integral to the way the bank operates.
Mr Jenkins is due to present his strategy for Barclays to the City in February on the day of its 2012 results. The new boss of Barclays has stated publicly his desire for it to become the "go-to bank" in terms of the ethical standards with which it conducts its business.
The move effectively sees Mr Sants swap sides from one of the regulator to being the first point of contact at Barclays on regulatory matters.
The role will also include him policing trading activities.
He said today: "I left the FSA with the intention of finding a role which would allow me to put into practice the experience I have gained in both the public and private sector.
"Taking on the responsibility of leading Barclays global compliance function, and overseeing the bank's relationships with governments and regulators, gives me that opportunity.
"I am delighted to have been asked by Antony Jenkins to create and implement a new compliance concept and approach which will be central to the cultural change which is already underway at the bank."
Barclays share price was 1% higher shortly after the announcement was made.