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RBS faces 'further action' by financial regulator | RBS faces 'further action' by financial regulator |
(about 1 hour later) | |
The financial regulator has said it may take "further action" over the way Royal Bank of Scotland mistreated some small business customers. | |
The Financial Conduct Authority has published an interim report into failings by the RBS division that dealt with struggling businesses. | |
The Global Restructuring Group was found to have "widespread" mistreatment of customers in some areas. | |
RBS said it had acknowledged failings and again apologised for its mistakes. | |
The report identified a number of failings, including that 92% of viable firms handled by GRG suffered "inappropriate action", such as interest charges being raised or unnecessary fees added. | |
It was cleared in others, according to the report prepared for the regulator. | |
FCA chief Andrew Bailey said it was investigating whether there were grounds for action against the bank. | FCA chief Andrew Bailey said it was investigating whether there were grounds for action against the bank. |
Chief executive Ross McEwan said the bank had set aside £400m for compensation and had paid out £115m. | |
The BBC reported on a leaked copy of the report in August, leading to political pressure on the FCA to publish more of the findings. | |
The regulator was initially reluctant to do so, but gave in to pressure from MPs and campaigners. | |
'Not before time' | |
GRG operated from 2005 to 2013 and at its peak handled 16,000 companies. | |
But Mr McEwan said the "most serious allegations made against the bank have not been upheld". | |
"The culture, structure and way RBS operates today have all changed fundamentally since the period under review," he said. | |
The bank has dealt with more than 900 complaints going back a decade, Mr McEwan added. | |
However, the report found that inappropriate treatment of small business customers was "widespread" in areas including: | |
Nicky Morgan, who chairs the Treasury select committee, said: "It has taken the FCA too long to publish its summary of the skilled persons' report, so this is not before time." | |
The committee is carrying out its own assessment, which will report back later this week, she added. | |
Mr Bailey is due to appear before MPs on the committee on 31 October. |