James Staley, Barclays C.E.O., Faces UK Probe on Jeffrey Epstein Ties

Jeffrey Epstein referred dozens of wealth clients to Mr. Staley and JPMorgan.

Barclays said Thursday that UK financial regulators are investigating the relationship between James E. Staley, its managing director, and Jeffrey Epstein, the financier, who killed himself last August after being exposed to new allegations of sex trafficking with underage girls.

In a statement filed with the London Stock Exchange, the UK bank said that the Financial Conduct Authority and the Prudential Regulation Authority had initiated an investigation into the ongoing relationship.

"As has been widely reported, Mr. Staley developed a professional relationship with Mr. Epstein early in his career," the statement said. Barclays added that Mr. Staley, known as Jes, informed the bank that he had no contact with Mr. Epstein after taking top position with the lender in December 2015.

In his filing, Barclays said regulators were investigating how Mr. Staley characterized Mr. Epstein's relationship with the company and what the company subsequently told the Financial Conduct Authority about it.

Among other things, Mr. Epstein linked Mr. Staley to Glenn Dubin, who headed Highbridge Capital Management, a hedge fund in which JPMorgan acquired a majority stake in 2004. The deal made Mr. Staley's JPMorgan wealth management division a major player in the hedge fund world.