Economy

RBS at risk of 'further action' from watchdog over controversial turnaround unit

In its summary, the FCA said: "The independent review identified significant concerns about SME customer treatment by RBS, and SME customers engaged with during the independent review believe very strongly that they did not receive the support they could have reasonably expected in a period of extreme financial stress for many SMEs and other businesses and for the United Kingdom and global economy more generally".

The FCA has come under intense political pressure in recent weeks to publish the full "skilled persons" report, known as section 116, which was commissioned from a specialist consultancy called Promontory.

RBS has accepted that it did not meet the standards it set for itself which impacted on how it treated some of its SME customers.

The review found evidence of "widespread inappropriate treatment" of small business customers, including failing to support businesses in a manner consistent with good turnaround practice.

RGL Management chief executive James Hayward said: "We have always said that the FCA report will be a whitewash and that now looks to be the case".

It said it had identified instances of inappropriate treatment on the part of GRG in 92% of the cases it reviewed.

Mr Bailey said commercial lending is largely unregulated in the United Kingdom and the report "highlighted a gap in support for smaller businesses with genuine grievances about business banking conduct issues that could benefit from impartial assessment and quick resolution".

"While the most serious allegations were not upheld. the report did identify other concerns about the treatment of SME customers".

McEwan said some of the individuals employed by GRG continued to work at the bank, and that the bank and individuals could be the subject of investigations by the FCA.

"RBS is trying to play down the significance of the findings in the interim FCA report".

"It has taken the FCA too long to publish its summary of the skilled persons' report", she said.

A barrister hired by parliament's Treasury Select Committee, which has pressured the FCA to publish the report, still needs to check the detailed summary is faithful to its full contents. Nicky Morgan, the Conservative MP who chairs the committee, said the lawyer would report back to the MPs this week.

Bailey is due to be questioned on the report by the Treasury Committee on October 31.

The FCA report makes no mention of criminality, and the regulator refused to say whether it had made any reference to police forces around the UK. Amid concerning reports about the scope of RBS' £400 million compensation scheme for those affected, it's encouraging to hear that we will receive quarterly updates on how the redress process is progressing.

Bailey said the FCA had received many requests for help from small businesses and heard some "very sad stories".

He said the FCA is now seeking to widen the scope of the Financial Ombudsman Service to provide more access to this service to SMEs.



Like this

Latest


25 October 2017
Chipotle's sales disappoint, shares dive 6 percent
Media headlines about Chipotle Mexican Grill (NYSE:CMG) have trended somewhat positive this week, Accern Sentiment reports. BTIG Research reissued a neutral rating on shares of Chipotle Mexican Grill in a research note on Friday, July 21st.

25 October 2017
Anna Faris shares her own on-set harassment story
And yet, the advice is as valuable as ever, if not more, given the realism and honesty with which Anna approaches her own life. Of course, it follows the accusations that Harvey Weinstein harassed dozens of women over the course of nearly three decades.

25 October 2017
O'Reilly dropped by talent agency after report of sexual harassment settlement
It's nice to know that the past six months haven't diminished O'Reilly's sense of self worth. Bolling said in a statement Monday that it was "beyond inappropriate" for Mr.

25 October 2017
'DWTS' Wardrobe Malfunction! Vanessa Lachey Loses Her Skirt
Obviously we'd still love to be in it, you know, we're human, we're competitors, we'd love to still be there - but I have no regrets at all. "It actually sent her over the top", the judge said.

25 October 2017
Iran 'sentences Sweden resident to death' for spying
Human rights group Amnesty International said it came after "psychological torture, false confessions and a grossly unfair trial". An Iranian court on Tuesday sentenced a man to death after he was found guilty of spying for Israel.

25 October 2017
Equity Research Analyst's Stock Ratings: Ascena Retail Group, Inc. (ASNA), Intel Corporation
The market capitalization (Stock Price Multiply by Total Number of Outstanding Shares) for the company is reported at $374.90M. ILLEGAL ACTIVITY NOTICE: This article was first published by TrueBlueTribune and is the sole property of of TrueBlueTribune.

25 October 2017
Markelle Fultz has fluid drained from right shoulder
Through his first four games, Fultz is averaging just six points on 33 percent shooting, and has yet to take a three pointer. He says the shooting form is the result of his attempt to work through an injured shoulder.

25 October 2017
Per Mertesacker: 'Crucial that Arsenal hit back against Everton'
Arsenal have moved up to 5th in the league following the win, but have remained nine points adrift of Manchester City. Agile, quick, intelligent". "I believe he has now come back from injury, he has worked very hard".

25 October 2017
Joe Lewis Departing Amazon Studios
Amazon has also won an Emmy for its National Football League reality show All or Nothing: A Season With the Arizona Cardinals . This month, his division also debuted its adaptation of Lore , the popular scary-story podcast from Aaron Mahnke.

25 October 2017
European Union lawmakers demand five-year phase out of weedkiller glyphosate
Shortly after the European Parliament approved the glyphosate ban resolution, the Commission walked back its recommendation. The meps also voted to ban any use of non-professional the substance at the end of the year.



Recommended