The accountancy watchdog has fined the former finance director ofBradford & Bingley for failing to alert his board to a serious worsening of the bank’s financial position during the financial crisis.

The Financial Reporting Council (FRC) reprimanded Chris Willford and fined him £13,000, reduced from £20,000 because he settled early. The FRC’s fine follows a £30,000 penalty imposed by the Financial Conduct Authority (FCA) in December over the same matter.

The case centred on May 2008 when Bradford & Bingley was trying to raise £400m from its shareholders in a rights issue to increase its financial strength.

On 16 May, Willford received an internal report that showed bad debts on the bank’s buy-to-let mortgages worsening and its net interest margin shrinking. A new forecast also showed the bank would struggle to meet its target for annual profits.

Willford failed to tell his fellow board members in time for the rights issue circular to shareholders, agreed by the board on 19 May, to describe the bank’s worsening finances.

The rights issue subsequently failed, plunging Bradford & Bingley into greater chaos. The bank was nationalised in September 2008 and its savings accounts were bought by Santander.

Paul George, the FRC’s executive director of conduct, said: “This case shows the high standards of professional conduct expected from accountants who take up executive positions in business.”

Willford is one of only a few senior figures to be punished for their actions during the financial crisis. He successfully resisted the FCA’s attempt to fine him £100,000 but he settled quickly with the FRC.

Willford will also pay the FRC £250 to cover the costs of its in-house lawyer.

The FRC said Willford’s conduct could have undermined confidence in other accountants but that his behaviour was not dishonest, deliberate or reckless. In its judgment last year, the FCA said the oversight by Willford was not to blame for a profits warning on 2 June 2008, the collapse of the rights issue or Bradford & Bingley’s nationalisation.