The Financial Conduct Authority has reiterated that all business leaders need to exercise sound judgement and set an example as it announced it has decided to fine former Barclays chief executive James Staley £1.8 million for "misleading statements".

Therese Chambers, joint executive director of enforcement and market oversight at the FCA said: “A CEO needs to exercise sound judgement and set an example to staff at their firm.  Mr Staley failed to do this."

The FCA's case relates to an instance when the FCA had asked Barclays to explain what it had done to satisfy itself there was no impropriety in the relationship between Staley and Jeffrey Epstein, a former banker and convicted sex offender, and Staley approved Barclays' response which stated that there was no close relationship and he had ceased contact with Epstein long before joining Barclays.

The FCA says it subsequently discovered emails between the two in which Staley described Epstein as one of his "deepest" and "most cherished" friends, and it found they had been in contact in the days leading up to Staley's appointment as CEO being announced.

The FCA has made the decision to fine Staley £1.8m and ban him from holding a senior management or significant influence function in financial services.

Staley has referred the decision to the Upper Tribunal where he will present his case, so any findings in the Decision Notice are therefore provisional and reflect the FCA’s belief as to what occurred and how it considers his behaviour should be characterised

Chambers added: "We consider that he misled both the FCA and the Barclays Board about the nature of his relationship with Mr Epstein.

"Mr Staley is an experienced industry professional and held a prominent position within financial services. It is right to prevent him from holding a senior position in the financial services industry if we cannot rely on him to act with integrity by disclosing uncomfortable truths.”