'The Lib Dems have dropped a probe into former leader David Steel and what he knew about child sex claims against the late MP Cyril Smith.
Lord Steel had been suspended by the party after comments concerning Smith he gave to the Independent Inquiry into Child Sexual Abuse (IICSA).
The former Holyrood presiding officer said a conversation with Smith had left him 'assuming' the allegations were correct, but that it was 'nothing to do with me'.
An internal party investigation has now ruled there were 'no grounds for action' against Lord Steel as Smith 'did not confess to any criminality'.
His suspension has now been lifted, with Lord Steel saying the party has 'cleared my name'.
He said he had voluntarily given evidence to the inquiry and had 'offered open and honest answers, some of which have been erroneously reported and taken out of context'.
Lord Steel continued: 'These inaccurate elements led some to question my own such commitment.
'Opinions and assumptions are not facts and those expressed in some quarters have caused me great personal distress.'
Scottish party leader Willie Rennie stressed it was important the party carried out the probe because 'we take the issue of vigilance and safeguarding incredibly seriously'.
He added: 'The clarifications that David Steel has provided to us state clearly that Cyril Smith did not confess to any criminality which is why he took no further action.'
The probe centred around a chat between Lord Steel, then Liberal leader, and Smith in 1979 after a Private Eye article revealed the MP's abuse of children at a care home.'
Read more: Lib Dems drop probe into Lord Steel over his failure to take action against paedophile Cyril Smith in the 1970s
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