On 14 January 2016, the PRA issued Final Notices to Barry Tootell (former Chief Executive of Co-operative Bank Plc (Coop Bank)), who was fined £173,802 (Stage 1: 30% discount), and Keith Alderson (former Managing Director of Co-op Bank’s Corporate and Business Banking Division), who was fined £88,890 (Stage 1: 30% discount), for failure to comply with Statement of Principle 6 and being knowingly concerned in Co-op Bank’s breach of Principle 3. The PRA found that these breaches and failings had the clear potential to affect the safety and soundness of the Co-op Bank. Both individuals were prohibited from holding a significant influence function in a PRA-authorised firm.

The PRA’s action against these individuals followed the PRA and FCA’s joint investigation and censure of the Co-op Bank (as reported in Volume 3 Issue 8 of this newsletter).

In a PRA news release Andrew Bailey, Chief Executive Officer of PRA, said “This action makes clear that there are serious consequences for senior individuals who fall short of the PRA’s expectations. The new Senior Managers Regime, which will be introduced in March, will further ensure that senior managers are held duly responsible for their actions”. The enforcement action taken against these individuals evidences the PRA’s drive to improve the accountability of senior figures.