You are here: Home - Saving & Banking - News -

Co-op Bank censured by regulators but dodges fine

0
Written by:
11/08/2015
The Co-operative Bank has dodged a multi-million pound fine by the regulator for failings that led to its near collapse two years ago.

The Financial Conduct Authority (FCA) issued the bank with a public censure today but said a financial penalty would threaten its already weak recovery.

In a joint investigation with the Prudential Regulation Authority (PRA), the FCA found that Co-op Bank breached ‘Listing Rules’ which require issuers to ensure that public information is not misleading so investors can make fully informed decisions.

The PRA also separately published the result of its enforcement action against the bank.

It found that between 22 July 2009 and  31 December 2013, Co-op Bank failed to “manage its affairs responsibly, with adequate risk management.”

The regulator said Co-op Bank’s failings would normally merit a substantial fine. However, in the circumstances, it has decided not to impose a financial penalty.

Georgina Philippou, acting director of enforcement and market oversight, said: “Firms have a very basic but extremely important responsibility to be transparent with their investors and with us, as their regulator, and Co-op Bank fell short of this. As a result, investors were left unaware of Co-op Bank’s true capital position and we were left in the dark about intended changes to senior personnel at the bank.

“This is a serious matter, but exceptional circumstances mean a public censure is the appropriate and proportionate response. It is vitally important that Co-op Bank’s capital resources are directed towards improving its resilience.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Nuisance call blocking firm fined for ‘aggressive’ cold calling

A company that claimed it could stop nuisance calls has been fined by the Information Commissioner’s Office (ICO), after the regulator found...

Close