Tyrie urges FCA to publish its report into RBS
City AM, 18.10.16
The chairman of the influential Treasury Select Committee (TSC) Andrew Tyrie has urged the financial watchdog to publish its report on Royal Bank of Scotland’s treatment of financially distressed business customers.
Tyrie has written to the Financial Conduct Authority (FCA) chief executive Andrew Bailey, asking him when the report will be published.
The calls follow recent investigations by Buzzfeed and the BBC in to historic allegations of mistreatment of some of RBS’s business customers, claiming the bank deliberately “distressed” viable business customers by placing them into its now-defunct arm for struggling companies, the Global Restructuring Group.
RBS would then pick up additional fees and increase its profit margins, as well as be able to purchase devalued assets.
Documents leaked earlier this month allegedly show RBS, which denies the claims, deliberately put pressure on struggling businesses it claimed to be helping and bought their assets at a discount.
At the beginning of 2014 the FCA said it would carry out a review into issues surrounding RBS, which was expected to be published at the end of 2015, though has yet to appear.
RBS have said that they will consider the question of redress after publication of the FCA’s report. The delay in publication means that many businesses will not know where they stand.
I have asked Mr Bailey when he intends to publish the report. It is likely that this will be raised when the Committee sees him before the end of the year.
Earlier this month a group of over 100 small businesses claiming RBS drove them into the ground for its own gain said it would launch legal action against the bank next year.
RGL Management Limited was formed in March and involves around 140 parties with claims averaging between £6m to £7m. It’s thought the total claim could potentially pass the £1bn mark.
View original post on AM City