After months of hearing no update in relation to Royal Bank of Scotland’s (RBS) Global Restructuring Group (GRG) compensation scheme, it was recently announced that despite slow progress, the initial stage, ‘the refund of complex fees’, had finally been completed.
Just weeks later, taking us to last Friday, it was reported that the FCA report into the Global Restructuring Group was obtained by the BBC.
The Times reported that the FCA was unlikely to publish the 361-page-document as it is ‘subject to an internal inquiry’, despite the fact that it was leaked to the BBC. A spokesman for the FCA told The Times,
“We are investigating issues raised by the report which fall within our remit. We will publish the outcome of our investigation, and a full account of the issues contained in the report, once the investigation is complete.”
Both struggling and viable businesses have repeatedly accused RBS of systematic abuse after many were faced with extortionate management fees, high-interest charges and debt for equity swaps, known as PPFAs. The full list of GRG mistreatment tell-tale signs can be found in our GRG guide.
The leaked report supports the above claims as it was found that 92% of viable firms managed by RBS’s GRG experienced ‘inappropriate treatment.” RBS have previously denied these claims.
“Miscarriage of Justice”
SME Alliance, a not-for-profit organisation supporting GRG victims have penned a letter to Andrew Bailey, Chief Executive of the Financial Conduct Authority (FCA). A key point which has been highlighted in the letter reads as follows:
“It is reasonable and in fact obvious that, had victims of GRG had sight of your report prior to going through any redress scheme, complaints to the FOS and/or and most importantly, through costly court cases, your findings would have lent considerable weight to the outcomes.”
The letter goes on to read,
“You have commented in the press to say much of the work done by the GRG division is unregulated and therefore the FCA’s powers may be limited. If this is the case, we would question why the FCA undertook its review in the first place?”
SME Alliance have addressed the secrecy adopted by the FCA as causing ‘multiple miscarriages of justice.’ The report is not expected for release within the foreseeable future, but victims of GRG are calling for the long-awaited report which was commissioned in 2014 to be immediately released.
For more information, take a look at our GRG Guide.
Seneca Banking have recovered £2.75 million relating to GRG losses and just over £100 million in total compensation for clients. If you think that you may have been affected by the Global Restructuring Group, call us on 01204 322805 or get in touch through our contact form.