Co-op Bank free from Regulatory Fine

The Financial Conduct Authority (FCA) said the Co-op had misled investors - which would normally mean a fine.

Georgina Philippou, the FCA's acting director of enforcement said it was a serious matter.

But she said exceptional circumstances meant public censure was the appropriate and proportionate response. 

Ms Philippou said: "It is vitally important that Co-op Bank's capital resources are directed towards improving its resilience.

"Co-op Bank's statements about capital in the 2012 financial statements were misleading."

Co-op said these were "legacy issues" that had occurred under the previous management.

Its chairman, Dennis Holt, apologised and said the bank was "a significantly stronger organisation today under the leadership of the current senior management team".

"They relate to historical events and legacy issues and were not decisions made by the current senior management team."

Mr Holt said the bank had made "material progress" in addressing these shortcomings and had overhauled processes, systems and practices, significantly strengthened its board and rebuilt the bank's capital position."