The Global Restructuring Group (GRG) was RBS/NatWest’s former turnaround division. Many business banking customers of RBS and NatWest were informed they were over-geared or underperforming, and as such were transferred to the unit. After the onset of the financial crisis, 16,000 companies were allegedly pushed into GRG.
In the vast majority of cases, GRG was used to secure as much return for the Bank as possible, regardless of whether the business was performing well or not. Aggressive restructuring, lack of transparency around fees and debt for equity swaps known as PPFAs were just some of the ways businesses were affected by GRG.
Seneca has been involved in numerous settlement agreements relating to the GRG and other financial misconduct cases. We have recovered £2.9m relating to GRG losses and over £100m in total compensation for UK businesses.
The Financial Conduct Authority & GRG
The findings of the Financial Conduct Authority (FCA) highlight misleading and poor communication with SMEs throughout GRG. The placement of undue focus on pricing increases and debt reduction to the long-term detriment of SMEs has drawn a clear link between the Bank’s handling of West Register, the property arm of RBS, and significant losses.
RBS announced that it has set aside up to £400m for those affected by GRG but with over 16,000 businesses affected, this compensation does not come close to the amount owed. Thousands of businesses were driven into bankruptcy after being transferred to Royal Bank of Scotland's business support unit.
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GRG guide today
RBS's Global Restructuring Group allegedly crippled 16,000 businesses through systematic mistreatment. Our guide includes a timeline of events, tell-tale signs of GRG handling, and insight into the compensation process.
How can Seneca help?
As GRG specialists, Seneca have long been pursuing the release of the FCA’s report into GRG. As a result of our sector experience, we are able to offer full support to customers who have been adversely affected by the Global Restructuring Group.
Utilising our specialist knowledge of banking misconduct, we can review your experience and advise on the next steps. It is essential that you are well advised throughout the compensation process in order to reach maximum redress.
Seneca have recently been featured in the Business Desk, The National and The Times for our work in relation to GRG. We found that the recent RBS complaints review scheme was altered by RBS, undermining the appeals process, and this change which was made without notification to applicants.
- August 13, 2018
- August 13, 2018
Get in touch
For more information regarding the Seneca service, please do not hesitate to get in touch. A member of our specialist team will be able to assist with any query you may have.