Major bank dodges "substantial" FCA fine
By Tom WrightThe Financial Conduct Authority has issued a public censure against The Co-operative Bank plc after it failed to be open with the regulator
The Financial Conduct Authority has issued a public censure against The Co-operative Bank plc after it failed to be open with the regulator.
In a joint investigation with the Prudential Regulation Authority (PRA), the FCA found that the bank had also breached Listing Rules.
The Listing Rules require issuers to make sure information published is not misleading so investors can make informed decisions.
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.”
The watchdog stated that Co-op Bank’s failings would normally merit a substantial fine, however the FCA has decided against it on this occasion.
Dennis Holt, Chairman at Co-op Bank, said: “On behalf of the Bank, I would like to apologise again to customers for these past failings and reassure them that the Bank is a significantly stronger organisation today under the leadership of the current senior management team.”
“The investigations by the regulators into what went wrong at the Bank are very important and the Board takes the censures extremely seriously.
“The Bank has been co-operating fully with the regulatory authorities and the Board fully accept the lessons that need to be learnt, but it is important to remember these are not a reflection of how the Bank is run today.”
The PRA has also separately published results of its enforcement action against the bank.
The regulatory body found that the bank had failed to manage its affairs responsibly and with adequate risk management.
Keywords: co-operative bank, co-op bank, coop bank, fca, financial conduct authority, prudential regulation authority, PRA, Georgina Philippou, Dennis Holt
Source: Bridging & Commercial — https://bridgingandcommercial.co.uk/major-bank-dodges-substantial-fca-fine