An influential committee of MPs is placing extra stress on the UK’s monetary watchdog to publish a report into misconduct at RBS.
The Treasury Committee stated it may use “formal powers” to demand publication of a Financial Conduct Authority report leaked to the BBC.
The FCA has refused to publish the total report, which scrutinised RBS’s small enterprise International Restructuring Group.
The FCA has stated it’s going to publish an in depth abstract of the report.
Nicky Morgan, chair of the Treasury Committee, needs to nominate an impartial authorized adviser to scrutinise the detailed abstract and evaluate it with the report.
She stated that if the FCA didn’t settle for Andrew Inexperienced QC as an impartial authorized adviser, the committee may look to drive the FCA to publish the report.
The committee may even drive publication if he concludes that the detailed abstract just isn’t an correct illustration of the total report.
The FCA has already revealed a brief abstract.
The leaked report stated that RBS’s International Restructuring Group (GRG), a division ostensibly set as much as assist firms in hassle, mistreated lots of its shoppers.
It discovered that some type of “inappropriate motion”, comparable to curiosity prices being raised or pointless charges added, was taken by GRG in relation to 92% of viable corporations.
RBS has denied systematically abusing its clients.
An FCA spokesman stated the regulator welcomed “additional dialogue” with the Treasury Committee on offering assurance in regards to the publication of the abstract.
He added: “The FCA has dedicated to publishing an in depth abstract of the GRG report.
“To supply assurance on the abstract, we beforehand requested an impartial exterior counsel to substantiate that it’s a honest and balanced account of the total report’s findings.”
RBS’s International Restructuring Group operated between 2005 and 2013 and at its peak dealt with 16,000 firms.
The unit would step in when companies had missed a mortgage compensation, or had a notable dip in gross sales or earnings, and was marketed as a turnaround specialist.
However the FCA report discovered that firms positioned within the group had little likelihood of getting out of it. Solely 10% returned to the principle RBS financial institution intact.
On the finish of 2014, 69% of corporations had been nonetheless within the successor to GRG.
Lots of these companies remained tied into advanced loans with the financial institution within the type of derivatives linked to rates of interest, from which it’s usually too costly to go away.
RBS stated it had apologised for earlier mistreatment of some clients and had taken steps to place issues proper, together with a brand new complaints course of and an automated refund of advanced charges paid by these clients.