View more on these topics

Co-op Bank seeks to raise extra £400m

The Co-operative Bank is seeking to raise an additional £400m after discovering further legacy issues relating to missold payment protection insurance and interest rate swaps.

In an announcement this week, the bank says its capital position is weaker than previously thought after discoveries made in an ongoing review of its legacy operations, assets and liabilities.

The bank expects to make a pre-tax loss of between £1.2bn and £1.3bn for 2013 in full results published on or before 8 April.

Co-op Bank chief executive Niall Booker says: “The starting capital position of the bank for the four- to five-year recovery period is weaker than in the plan announced last year.”

The bank expects to report £400m in charges relating to conduct and legal documentation issues for 2013 and costs of £40m relating to the separation of the Co-op Bank from the Co-op Group.

The Co-op Bank had to be rescued last year after it was left with a £1.5bn capital shortfall. Many of its troubles stemmed from the merger with Britannia Building Society in 2009.

In November, it announced that a group of private investors would inject nearly £1bn into the bank in exchange for a 70 per cent ownership stake.

Jacksons Wealth Management managing director Pete Matthew says: “£400m is a lot of money and the whole thing looks like a catastrophic mess.”



Govt announces retrospective auto-enrol adviser commission ban

The Government has dealt a huge blow to advisers by announcing plans to ban pension schemes with in-built commission being used for automatic enrolment. Pensions minister Steve Webb confirmed the ban would be introduced for all pension schemes from April 2016. Consultancy charging will also be prohibited for all auto-enrolment schemes form April 2015 – […]

Financial advice-planning-advice-cashflow-analysis

One year on from the RDR, demand for investment advice is strong

A little over one year on from the introduction of the RDR, one thing is clear: the demand for investment advice among UK savers has not gone anywhere. In fact, despite the apprehension that preceded it, few of the concerns raised at the time seem to have materialised. Not only have new requirements resulted in increased […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm