* Sants will also oversee relations with governments,
* Sants will report directly to Chief Executive Antony
* CEO says compliance must be 'universally welcomed and
By Matt Scuffham
LONDON, Dec 12 Barclays has appointed
Hector Sants, former boss of British regulator the Financial
Services Authority, to oversee its compliance and relationship
with governments and regulators as it looks to repair its
Barclays said Sants will oversee compliance activities
across the bank in all the regions in which it does business.
The appointment marks a change to the bank's structure with all
compliance staff reporting to one individual for the first time.
Sants in turn will report directly to Chief Executive Antony
Jenkins, who is overhauling the bank after it was fined 290
million pounds ($467 million) by regulators investigating the
manipulation of Libor and other key interest rates. The affair
led to the departure of the previous CEO, Bob Diamond.
Jenkins said the appointment of Sants underlined his
commitment to creating a culture at Barclays where compliance is
"universally welcomed and observed".
Barclays said Sants will be responsible for ensuring the
conduct of staff is consistent with the bank's values, "as well
as the spirit and letter of the law and the expectations of
regulators in the geographies where Barclays operates".
"With a huge wealth of private and public sector experience
and having most recently led one of the world's pre-eminent
regulatory authorities, I can think of no more suitably
qualified person than Hector Sants to take on these challenges,"
Jenkins said in a statement on Wednesday.
Last month the bank's current head of compliance, Mike
Walters, told British lawmakers examining bank standards that he
didn't believe it was the responsibility of Barclay's compliance
function to make the bank compliant. "Complying is part of the
culture but compliance is the responsibility of everyone at
Barclays," he said.
Walters will take up the new role of managing director for
conduct and risk following Sants' appointment on Jan. 21.
Sants stepped down as chief executive of the FSA in June and
had also held talks with accountancy firm Deloitte, as a welter
of new financial industry rules has put expertise in regulation
at a premium.
The FSA is being scrapped in April as part of a shake-up of
supervision that will make the Bank of England the main banking
supervisor. That has triggered a string of departures from the
FSA for the deep pockets of the private sector.
Margaret Cole, former head of enforcement, left earlier this
year to join PricewaterhouseCoopers. Jon Pain left last year to
work for KPMG, while Thomas Huertas, a former FSA banking
supervisor, is now part of Ernst & Young's regulatory team.
Barclays did not provide details of Sants' pay. He was paid
836,000 pounds by the FSA for the 2011/12 financial year.