The Financial Conduct Authority has banned convicted drug criminal Paul Flowers, former chairman of Co-operative Bank PLC, from the financial services industry indefinitely.

Mr Flowers was convicted of possessing illegal drugs and, separately, was also found to have used his work email for sexually explicit messages and to discuss illegal drugs, said the FCA. He was chair of Co-op Bank between 15 April 2010 and 5 June 2013. His actions made national newspaper headlines at the time.

The FCA found that Mr Flowers’ conduct demonstrated a “lack of fitness and propriety” required to work in financial services.

The FCA found that while chairman of the bank, Mr Flowers:
• used his work mobile telephone to make a number of inappropriate telephone calls to a premium rate chat line in breach of Co-op Group and Co-op Bank policies; and
• used his work email account to send and receive sexually explicit and otherwise inappropriate messages, and to discuss illegal drugs, in breach of Co-op Group and Co-op Bank policies despite having been previously warned about his earlier misconduct.

After stepping down as chair, Mr Flowers was convicted for possession of illegal drugs.

Mark Steward, FCA executive director of Enforcement and Market Oversight, said: “The role of chair occupies a unique place of trust and influence. The chair is pivotal in setting expectations of a company’s culture, values and behaviours.

“Mr Flowers failed in his duty to lead by example and to meet the high standards of integrity and probity demanded by the role. These high standards are what the financial services industry and the wider community rightly expect of its senior individuals. Where a chair, or other senior individual, fails to discharge these standards the FCA will hold them to account.”

The FCA found that Mr Flowers has demonstrated an unwillingness to comply not only with the FCA’s requirements and standards but also with other legal, regulatory and professional requirements. 

The regulator said it believes Mr Flowers’ disregard for the standards he is expected to meet demonstrates a lack of integrity and that any future involvement by Mr Flowers in the financial services industry risks undermining consumer and market confidence.