Economy

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

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

loading...
loading...

Latest


25 October 2017
Almost 200 More Women Have Come Forward with Stories About James Toback
" #JamesToback approached me in the 80's on Columbus Ave with the same language - wanted me to audition, come to his apt", she wrote . "I refused.

25 October 2017
Twitter just announced some big changes around political ads
The company plans to launch a so-called transparency center, which will include details on ads, it said in a blog post Tuesday.

25 October 2017
Former production assistant becomes latest Harvey Weinstein accuser
The persistent 65-year-old moviemaker also asked her to join him on a jaunt to Paris to attend couture shows. After asking the producer for a job in NY , she claimed he invited her back to his hotel to talk about it.

25 October 2017
Pixel 2 XL Owners Reporting Screen Burn-In, Google Investigating
The audio issues are the latest quality control problem to come out of Google's hardware division. Indeed, its very worrisome due to the fact people have been anticipating for this smartphone.

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
MLB's anthem kneeler: Trump supporter denied me restaurant service
This is bigger than the uniform I put on every day. "That's the whole objective of us taking a knee during the national anthem". "His friendship definitely helps.

25 October 2017
Zaira Wasim thanks Aamir Khan over 'gift' of Secret Superstar
Does she have any secret talent which the people does not know about? I mean I am good at PJs, but she is brilliant at it... In the movie, directed by first-timer Advait Chandan, Zaira's character goes through a lot of struggle to fulfil her dream.

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
State Senate ponders House budget plan that's short of what it wanted
They said the goal is for House passage of the budget this week, putting the House on track to approve a tax bill by Thanksgiving. President Donald Trump promised Monday there will be "no change" to tax incentives for the popular 401 (k) retirement programs.

24 October 2017
Finally, Relief for Bear With an 'Astonishing' Tongue
The bear named Nyan Htoo, meaning "bright", endured a 4-hour-long surgery for the removal of almost half a stone of tongue tissue. The cub and with his brother were brought to live in a monastery a year ago after monks rescued them from illegal sale in China.