FCA still investigating RBS's GRG over SME issues
The City watchdog has published an interim report into the treatment by Royal Bank of Scotland small business clients, though it said the bank remained under investigation over some unnamed matters that could see further regulatory action.
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The Financial Conduct Authority on Monday revealed some top-level details of the independent 'skilled person' report into the treatment of by Royal Bank of Scotland of small and medium-sized enterprise customers transferred to its Global Restructuring Group.
After reviewing the case, the FCA agreed that RBS’s proposals, including to establish a complaints scheme and automatic returning of some fees, "were appropriate steps".
However, under pressure from the Treasury Select Committee, the 'interim' skilled person’s report being published on Monday is being examined by a legal counsel to assess whether its is a "fair and balanced summary" and if so, the FCA will publish a final version of the account and make clear anything that has changed as a result of the Committee's legal review.
Andrew Bailey, the FCA's chief executive, said the regulator was also "investigating the matters arising from the skilled person’s report and are focussing on whether there is any basis for further action within our powers".
"We cannot comment any further on this."
Nicky Morgan MP, chair of the Treasury Committee, said: “It has taken the FCA too long to publish its summary of the skilled persons’ report, so this is not before time. The Committee has put in place an arrangement to ensure maximum possible transparency is brought to this issue."
She added that the Committee will consider whether further steps are required when its independent adviser reports back later this week.
RBS CEO Ross McEwan said he was pleased that the FCA has confirmed the findings from last November and that the most serious allegations made against the bank have not been upheld.
“We have acknowledged for some time that mistakes were made and have apologised that we did not always provide the level of service and understanding we should have done for these customers in the aftermath of the financial crisis," he said.
“The regulator has again confirmed that the remediation steps we announced in November to address concerns for customers are appropriate.
“Any customer who feels they were treated inappropriately whilst in GRG should make use of the complaints process."