View more on these topics

Former Co-op Bank chief accepts misconduct charges

Cooperative-Co-operative-Bank-Branch-700x450.jpg

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.

Recommended

2

What’s the IHT position on final salary transfers?

I have been running various adviser events around the country over the last few weeks and a regular question has arisen connected to the rising numbers of final salary transfers. What is the inheritance tax position, especially if the transfer is driven by the desire for better death benefits and the customer is in relatively […]

Bravura lines up $148m IPO

Platform technology provider Bravura has kicked off an AUD$148m (£92m) initial public offering of shares in the company. 48 per cent of the company is being put up for sale to new shareholders. Existing shareholders, including management and Australian private equity firm Ironbridge Capital, will hold 52 per cent post-listing. Bravura employees will be able […]

2

Pension fraud could be 25% higher than first thought

The amount of pension fraud since the freedoms were introduced could be 25 per cent higher than first thought, analysis of City of London Police statistics suggests. City of London Police put the scale of pension fraud losses at £10.6m in the six months since the pension freedoms were introduced in April 2015. AJ Bell has obtained updated […]

Tax year-end planning with the family

From the Technical team at Prudential Let’s face it, many aspects of financial planning involve a lot of technical detail. At our face-to-face events, we’ve had great success bringing these technical topics to life through the use of practical case studies. Meet the family Prudential’s Planning Matters hub brings together a fictional family and explores […]

Time to stop the salami slicing on tax relief

Steve Webb  – Director of Policy and External Communications As the Autumn Statement approaches, Steve Webb calls for the Government to stop tinkering with tax relief. Twice a year, in the run-up to the Spring Budget and the Autumn Statement, we face a torrent of speculation as to what changes the Chancellor might make to […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment