LONDON (Reuters) - Former Barclays boss Jes Staley had sex with a member of serial paedophile Jeffrey Epstein's staff, the banker told a court on the third day of his evidence as he appeals against a proposed financial services ban.

Ex-Barclays boss Jes Staley on Tuesday insisted he was shocked by serial paedophile Jeffrey Epstein's 2019 arrest for sex trafficking, though Britain's Financial Conduct Authority (FCA) said that contradicted his evidence in a separate case.

Jes Staley lobbied the world’s biggest bank to keep Jeffrey Epstein as a client even after the disgraced financier was handed a prison sentence for soliciting underage girls.

Staley stated that he had been introduced to the woman by sex offender and disgraced financier Jeffrey Epstein, and that the sexual encounter was consensual.

Ex-Barclays boss Jes Staley said on Tuesday he had no idea about serial paedophile Jeffrey Epstein's "monstrous activities", as he gave evidence to try to overturn a finance industry ban over his relationship with the late financier.

Jeffrey Epstein described the former boss of Barclays as “like family” in an email to the Duke of York, a court has heard.