The RBS GRG Business Action Group which is made up of small businesses taking action against Royal Bank of Scotland (RBS) have called for Andrew Bailey, Chief Executive of the Financial Conduct Authority (FCA), to resign over the much-delayed GRG report.
The group which represents over 500 individuals and businesses is expected to launch a High Court case as it plans to sue RBS for between £1.5bn and £3.5bn, as reported by City AM.
The report which was commissioned almost three years is yet to published, despite a leak.
The news comes after Nicky Morgan, head of the Treasury Select Committee, called on the FCA to release the report. The Federation of Small Businesses (FSB) also followed calls made by Nicky Morgan calling for the official release of the report.
What’s the RBS GRG report?
The Global Restructuring Group was Royal Bank of Scotland’s former turnaround division which mainly operated between 2005 – 2013. RBS allegedly mistreated businesses through the restructuring unit in a bid to raise profit for the Bank.
In 2014, the FCA appointed Promontory and Mazars to lead a report into the Bank’s treatment of businesses under the Global Restructuring Group. The report was received by the FCA in October 2016. The FCA have said,
“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.”
The report which was leaked to the BBC found that 92 per cent of customers under the management of the Global Restructuring Group experienced ‘inappropriate action’.
The Federation of Small Businesses told City AM, “The regulator’s report will be vital to helping business owners secure the compensation they’re due.
“It’s hard to put a price on the damage that GRG has done to the wellbeing of our small business community. More than a decade on from its launch, those who had their livelihoods destroyed by GRG deserve not only the truth, but an apology.”
We support calls made by the RBS GRG Business Action Group in urging Andrew Bailey to resign after failing to deliver the report which was completed just less than one year ago.
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.