The bank came close to collapse in 2013 when it revealed a £1.5bn capital shortfall. A report produced by Sir Christopher Kelly concluded that the Co-op Bank’s problems stemmed from its 2009 takeover of the Britannia Building Society and poor management controls.

Tootell’s admission of misconduct ‘arises out of Adverse Findings made by the Prudential Regulatory Authority (PRA) in respect of [his] responsibilities as an approved person’, the FRC said.

In January, the PRA banned Tootell and Keith Alderson, who ran the bank's corporate banking arm, from holding a ‘significant influence function’ in a regulated firm and fined them £173,802 and £88,890 respectively.

Based on those findings, Tootell faces a six-year ban from membership of any accountancy institute and £20,000 payment towards the FRC executive counsel’s costs.

The regulator’s statement added that during the period between 1 January 2009 and 10 May 2013, Tootell breached Statement of Principle 6 of the Statements of Principle and Code of Practice for Approved Persons, which provides that an approved person performing an accountable function ‘must exercise due skill, care and diligence in managing the firm for which he is responsible’.

Also between 22 July 2009 and 10 May 2013, Tootell was knowingly concerned in the contravention by Co-op Bank of Principle 3 of the Principles of Business, in that it ‘failed to take reasonable care to organise and control its affairs responsibly and effectively, with adequate risk management systems’.

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 sanction reflects the significance of the Misconduct by a CFO and CEO of a major UK bank, and the need to promote public and market confidence in the accountancy profession and the quality of corporate reporting in this sector. Mr Tootell engaged in the FRC’s settlement process by accepting his Misconduct which has led to a considerable saving of time and cost.’
 
The investigation in relation to KPMG Audit Plc and the audit of the financial statements of Co-op Bank is ongoing.

In a statement, the Co-op Bank said: 'As with previous reviews of a regulatory nature, the FRC's statement highlights serious shortcomings in the way the Bank was managed in the past and, as we have said before, the investigations by the regulators into what went wrong at the Bank are very important. They indicate the extent of the previous problems at the Bank and emphasise that the turnaround is a lengthy and difficult process.

'The findings relate to previous management and the current management team has, over the last three years, progressed the turnaround, having raised additional capital, achieved considerable de-risking, delivered mobile and digital banking capability and strengthened the Bank's appeal to customers.'

The settlement between the FRC and Tootell can be read here.