LONDON (Reuters) - Ex-Barclays CEO Jes Staley gave misleading answers to Britain's Financial Conduct Authority about his dealings with Jeffrey Epstein when it was investigating his relationship with the disgraced financier, the FCA's lawyers alleged on Monday.

The FCA said in October 2023 that it intended to ban Staley from senior roles and fine him 1.8 million pounds ($2.27 million) in relation to a letter sent by Barclays ( JJCTF ) to the financial watchdog in 2019.

Staley said then that he was "very disappointed" with the FCA decision, which he is now challenging. His appeal is due to be heard by London's Upper Tribunal in March next year.

The watchdog found Staley, a former JP Morgan executive, had "recklessly approved" the letter, which the FCA said contained two misleading statements, about his relationship with Epstein and their last contact.

In documents for a preliminary hearing on Monday, the FCA said that Bank of England Governor Andrew Bailey, who was FCA chief executive between 2016 and 2020, and Barclays ( JJCTF ) chairman Nigel Higgins had both given witness statements for the case.

The FCA also argued in court on Monday that material from a lawsuit brought by the U.S. Virgin Islands against JP Morgan suggested Staley had misled the FCA in interviews and in his response to the tribunal case.

Staley's lawyers said that the FCA is attempting to present an entirely new case and allowing the British regulator to amend its case would be unfair.

Last year, JP Morgan agreed to pay $75 million to settle the U.S. Virgin Islands' claim that the bank aided in Epstein's sex trafficking. It also reached a confidential settlement with Staley, who JP Morgan blamed for keeping him as a client.

Epstein killed himself in a New York jail in 2019, while awaiting trial on sex-trafficking charges.

The FCA's lawyer Leigh-Ann Mulcahy said in court documents that, based on evidence given in the U.S. lawsuit, Staley had "dishonestly or recklessly" misled the watchdog in three interviews between 2019 and 2021.

Staley told the FCA that "I'd had zero contact, any relationship at all, with Jeffrey" while he was at Barclays ( JJCTF ), where he was chief executive from December 2015 until 2021.

Judge Tim Herrington will give his ruling on whether the FCA can amend its case at a later date.