Tom Kalaris, the former head of wealth management at Barclays Plc, has been denied approval to resume work in the UK financial sector after a London court ruled that he had acted dishonestly in relation to the bank’s controversial capital-raising efforts with Qatar.
Kalaris, who had been under scrutiny for his involvement in securing funds during the 2008 financial crisis, had sought to move forward with a new venture in wealth management after being acquitted of fraud charges. He aimed to become the CEO of Saranac Partners, a firm he founded in 2015, but his application was blocked by the Financial Conduct Authority (FCA).
On Tuesday, the court sided with the FCA, declaring that Kalaris was not “fit and proper” to lead Saranac Partners. The judges criticized Kalaris for providing misleading and dishonest responses during the FCA’s investigation, describing his answers as a “smokescreen and distraction.”
The investigation centered on Barclays’ desperate attempts to avoid nationalization during the 2008 financial crisis, which led to a controversial deal with Qatar to secure much-needed capital. Although the bank avoided a government bailout, the deal has since become a legal quagmire.
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In a separate case, the FCA is pursuing a £50 million ($66.1 million) fine against Barclays for failing to disclose its arrangements with Qatar. The bank is currently appealing the penalty, with a full trial expected later this year.
Saranac Partners, named after a lake in New York where Kalaris once lived, expressed disappointment with the court’s ruling but accepted the decision.
The firm said the issues in question predate its establishment and stated that the tribunal did not criticize Saranac or its activities. The company, which manages around £5 billion in assets, has offices in London and Madrid and counts former Abdrn Plc chief Martin Gilbert among its non-executive directors.
