The same applies to the board itself since it is backing Staley all the way and the regulatory inquiry also concerns the bank's "subsequent description" of the relationship in its response to the FCA.
Earlier on Thursday, the bank said its board believes the chief executive has been sufficiently transparent about his ties to Epstein, whom Staley said he had not seen since taking over as Barclays CEO in 2015.
In its statement, Barclays said Staley had developed a professional relationship earlier in his career with Epstein, who died in jail a year ago while awaiting trial on sex trafficking charges.
He said on Thursday that the last contact he had with Epstein was in the summer/autumn period of 2015 - seven years after the financier's conviction for sex offences - adding that he "deeply regrets" the relationship. Barclays retained its profitability target for 2020, while warning it will be challenging to achieve given macroeconomic uncertainty and low interest rates. Starting in 2000, Epstein regularly brought Staley business when he ran JPMorgan's private bank and the two were close professionally, a person familiar with the matter said a year ago.
Barclays said it had investigated Staley's relationship with Epstein and concluded the chief executive had only "a professional relationship with Mr. Epstein" early in his career.
The board said it is confident that Mr Staley's explanation is enough to recommend him for re-election.More news: Johnson reshuffles cabinet ahead of European Union deal
Barclays has previously said that Staley never engaged or paid fees to Epstein to advise him or provide professional services.
Barclays shares fell 3.4 percent on Thursday morning.
Staley has been running Barclays since late 2015.
"The FCA and PRA confirm there is an investigation concerning Mr Staley", the agencies said in a statement provided to Yahoo Finance UK.
That scandal resulted in a 642,430-pound personal fine ($833,167), about 10 per cent of his annual income.
A Barclays spokesman, Tom Hoskin, said on Thursday's conference call that "there's always the option to make an adjustment" to Staley's compensation, given how pay is deferred for the bank's directors.
"He was a client when I joined the private bank", Staley told journalists.More news: Body of missing hiker Stephanie Simpson found
Repercussions from the Epstein scandal continue to roil the business and political worlds, given the his decades of cultivating ties to USA and British elites.
Staley helped arrange JPMorgan's 2004 acquisition of a majority stake in Dubin's hedge fund, Highbridge Capital Management, a deal that helped elevate Staley within the bank. (A spokesman told the Times Staley had not been aware).
It is not the first time British financial regulators have looked into Staley's activities.
But several questions remain unanswered, including why the Barclays boss continued the relationship despite Epstein's conviction.
"The relationship was maintained during my time at JP Morgan but as I left JP Morgan the relationship tapered off quite significantly", Staley said.
"Obviously I thought I knew him well and I didn't".
-With assistance from Marion Dakers and Donal Griffin.More news: Netflix defends itself against new transmission rivals through the Samsung association