The Financial Industry Regulatory Authority (Finra) has fined Barclays Capital Inc. $3 million for misrepresenting delinquency data and inadequate supervision in connection with the issuance of residential subprime mortgage securities.

Issuers of subprime mortgage securities are required to disclose historical performance information for past securitizations that contain mortgage loans similar to those being offered to investors. Historical delinquency rates are material to investors in assessing the value of of such securities and in determining whether future returns may be disrupted by mortgage holders' failures to make loan payments.

In settling the matter, Barclays neither admitted nor denied the charges, but consented to the entry of Finra's findings.

Finra, independent regulator for securities firms doing business in the U.S., found that from March 2007 through December 2010, Barclays misrepresented the historical delinquency rates for three subprime residential mortgage securitizations it underwrote and sold.

Finra claims that inaccurate delinquency data posted on Barclays' Web site was referenced as historical information in five subsequent securitizations  and contained errors significant enough to affect an investor's assessment of them. Additionally, Barclays failed to establish an adequate system to supervise the maintenance and updating of relevant disclosure on its Web site.

"Barclays did not have a system in place to ensure that delinquency data posted on its Web site was accurate; therefore, investors were supplied inaccurate information to assess future performance of [these] investments," said Brad Bennett, executive vice president and chief of enforcement for Finra.