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28 Oct 2016 11:58am

Former Co-op Bank CEO banned

The former CFO and CEO of the Co-op Bank has admitted misconduct and agreed to pay a £20,000 fine

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Caption: Barry Tootell fined and banned by the FRC over his oversight of troubled bank

Barry Tootell, an ICAEW member, has also agreed to exclusion from membership for six years after admitting failure to act with due skill, care and diligence in managing the bank between 2009 and 2013.

According to the FRC, he was also involved in the bank's failure to organise and control its affairs responsibly and effectively with adequate risk management systems.

In January this year Tootell was also banned by the banking regulator the PRA from holding any senior roles in the City for life. He was fined a further £173,802.

Tootell stood down in May 2013, when the bank was downgraded by Moody's after pulling out of a deal - known as Project Verde - which would have seen it buy 632 branches of Lloyds Banking Group. Tootell had been leading the deal.

The bank nearly collapsed in 2013, when it discovered a £1.5bn black hole in its finances, in a year that coincided with chairman Paul Flowers being arrested for alleged class A drug offences.

On today’s announcement, Gareth Rees QC, executive counsel to the FRC, said, "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 FRC’s investigation into KPMG, Co-op’s auditors during the period in question, is ongoing, it said.

Ellie Clayton

 

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