The Financial Conduct Authority (FCA) has published an interim summary of the Global Restructuring Report (GRG) report which looks into a series of serious failings made by Royal Bank of Scotland (RBS).
After facing pressure from Nicky Morgan, Chair of the Treasury Select Committee (TSC), the FCA has agreed to a compromise and released an interim summary of the main report.
The FCA has identified some failings in how the GRG operated. In particular:
Daniel Fallows, director of Seneca Banking Consultants, gives his full analysis of the summary to Insider.co.uk. Read the article here.
Ross McEwan, CEO of RBS, said in response to the summary,
“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.
“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.”
The FCA have since said that they may undertake a ‘more focused investigation’ into how RBS treated small businesses within the Global Restructuring Group, however, it does not uphold the statement that RBS systematically destroyed businesses.
In August 2017, the report was subject to a leak which revealed that 92% of businesses experienced ‘inappropriate actions’, with just one in seven returning intact the main RBS Bank.
Police Scotland are also investigating claims that RBS systematically destroyed businesses through their former turnaround division.
For more information, view our GRG guide here
Seneca Banking Consultants have worked with several businesses affected by the Global Restructuring Group and our GRG findings have been featured in The Times, The Business Desk and The National.
We 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 use our online enquiry form.