Former Lib Dem chief executive Lord Rennard will not face a disciplinary hearing over sexual harassment claims but has been told he should reflect on his behaviour and apologise.
The barrister leading the Liberal Democrat internal inquiry into claims against the the peer said "Lord Rennard's behaviour has caused distress to a number of women".
However, Anthony Webster QC concluded that it was unlikely that this could be proved beyond reasonable doubt and therefore in his conclusion to the Regional Parties Committee on Tuesday night he said no disciplinary hearing should be brought.
In his damning comments he stressed that he had not made his findings because he found the evidence of the complainants unreliable and urged the senior Lib Dem to apologise.
He said: "I stress that I am not finding that the evidence of the complainants was unreliable. I have specifically discounted suggestions made during the investigation that the incidents had been invented as part of a political campaign against Lord Rennard.
"It is my view that Lord Rennard ought to reflect upon the effect that his behaviour has had and the distress which it caused and that an apology would be appropriate, as would a commitment to change his behaviour in future."
Alison Smith was one of the women who made allegations against Lord Rennard The QC, who spoke to a large number of witnesses during the inquiry, said: "My view, judging the evidence as a whole, is that there is a less than 50% chance that a charge against Lord Rennard could be proved to the requisite standard.
"In my opinion, the evidence of behaviour which violated the personal space and autonomy of the complainants was broadly credible.
"However, it is my judgement, considering all of the evidence collected, that it is unlikely that it could be established beyond reasonable doubt that Lord Rennard had intended to act in an indecent or sexually inappropriate way. Without proof of such an intention, I do not consider that such a charge would be tenable."
The affair has been an acute embarrassment for Nick Clegg, who was scrutinised over what he knew about the allegations and when, and whether he took appropriate action.
He said: "I want everyone to be treated with respect within the Liberal Democrats and that is why it is right Chris Rennard has been asked in this report to apologise and to reflect on his behaviour and why he won't be playing any role in my general election plans for the campaign in 2015."
Party president Tim Farron added: "While this process has not found to a criminal standard of proof that Lord Rennard acted with indecent intent, it is clear that he did not behave in the way that a Chief Executive should behave.
"Lord Rennard must reflect on his actions and apologise to the women involved."
He said that the party had reviewed the way harassment claims were dealt with following widespread criticism that the women's allegations had not been taken seriously or acted upon swiftly enough.
One of the women who made the allegations against Lord Rennard, former party activist and Oxford University lecturer Alison Smith, responded to the conclusion on Twitter.
She said: "In 2014 a major political party finds that it has no suitable procedures for dealing with allegations of serious sexual harassment.
"I have been arguing for months that the LDs procedures were fundamentally flawed. Credit to Alistair Webster for recognising this."
Nick Clegg admitted on his radio show that the women were 'let down' She called on the Liberal Democrats to withdraw the party whip and said they had to do "something" with the allegations because Mr Webster had acknowledged the "witnesses are credible".
Alison Goldsworthy, another of the women who made allegations about Lord Rennard's behaviour, said she was taking legal advice.
She said: "Faced with the opportunity to take strong action, the Liberal Democrats have once more opted for cowardice."
The Metropolitan Police announced in September that no charges would be brought against the peer.
At a fringe meeting at the Liberal Democrat party conference in September a number of women activists came forward to say how they had been made to feel uncomfortable by senior Lib Dems. One talked of how hands would "slip" down the back.
In a statement Lord Rennard, who resigned his position as chief executive in 2009, said: "I am pleased that this brings to an end all investigations concerning allegations made against me on Channel 4 News last February.
The Metropolitan Police also investigated the allegations thoroughly and over several months and found that there was no case to proceed.
My wife Ann and I are very grateful to our families and many friends both inside and outside the Liberal Democrats who have shown unwavering support throughout."
He added: "I now look forward to resuming my roles within the Liberal Democrats. I remain committed to the same values which made me join the Liberal Party as a teenager more than 40 years ago."
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