View more on these topics

Former Co-op Bank chief accepts misconduct charges


Former Co-operative Bank chief executive Barry Tootell has accepted misconduct charges from a Financial Reporting Council tribunal over his role in the bank’s near collapse.

Tootell cannot be a chartered accountant for six years and must pay £20,000 towards the cost of the FRC’s enquiry.

In January the Prudential Regulation Authority gave Tootell a lifetime ban and fined him £173,802 for presiding over the bank’s £1.5bn shortfall in capital and pulling out of a deal to acquire 630 branches of Lloyds bank.

The PRA action triggered the FRC misconduct charges.

An FRC statement says Tootell broke its rules between 1 January 2009 and 10 May 2013 by not showing enough care when leading the bank.

The FRC adds that between 22 July 2009 and 10 May 2013 Tootell broke its rules about showing effective leadership and had failed to organise an efficient risk management system for the bank.

Tootell agreed to the six-year ban and the £20,000 payment.

FRC executive counsel Gareth Rees says: “The period of exclusion imposed in this case sends a clear message to accountants of the high standards of professional conduct expected of them when undertaking important roles within business.

“The sanction reflects the significance of the misconduct by a CFO and CEO of a major UK bank, and the need to promote public and market confidence in the accountancy profession and the quality of corporate reporting in this sector. Mr Tootell engaged in the FRC’s settlement process by accepting his misconduct which has led to a considerable saving of time and cost.”

An investigation in relation to KPMG Audit Plc and the audit of the financial statements of Co-op Bank is ongoing.


Co-op Bank

Co-op Bank and Capita in financial row over contract

The Co-operative Bank and outsourcing firm Capita are engaged in a financial dispute with each claiming they are owed money by the other, The Telegraph reports. Co-op has countered claims by Capita that it is withholding payment for mortgage services, instead suggesting that it is owed money for delays, according to the newspaper. Capita’s chief executive […]

Co-op Bank

Co-op Bank hires John Worth as finance chief

The Co-operative Bank has hired John Worth as chief financial offer. Worth is currently interim finance chief at Hiscox, but has also worked at Barclays and Ernst & Young. He will join the lender at the beginning of September. Worth’s appointment follows the announcement of a new deputy chief executive in April. Ex-RBS director Liam Coleman is […]

Co-op Bank

Co-op chief asks for 60% pay cut

Co-operative Group chief executive Richard Pennycook has asked board members to drastically cut his pay package as it is “the right thing to do”. Pennycook took over the Co-op at its lowest ebb in 2014, branding £2.5bn losses a “disaster”. According to Sky News he has asked for his basic salary to be cut by […]

The curse of long-term cash

Trevor Greetham, Head of Multi Asset at Royal London Asset Management, reveals why clients should be seriously concerned when short-term holdings of cash turn into a long-term investment. There is nothing wrong with holding wealth in the form of cash on a short-term basis. For many people capital stability is important and access to ready cash […]


News and expert analysis straight to your inbox

Sign up