Different review, same principles? GRG review forecast

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Posted in:Banking and Finance, Litigation|May 6, 2016 | Join the mailing list

RBS are certainly consistent in their approach to reviewing their wrongdoings, if nothing else.

SMEs expecting a fresh approach to RBS’ internal review of the treatment of those businesses that suffered under the Bank’s GRG division are likely to be very disappointed. The negative experiences of many businesses who participated in the FCA led review into the sale of interest rate hedging products (“the Review”) are likely to be replicated with the appointment of Mr Mark Spurin, the same person who oversaw RBS’ controversial review redress scheme, Project Rosetta.

The failings of Project Rosetta are well-known and attempts have been made at a Parliamentary level, principally through the efforts of Guto Bebb MP, to challenge the fitness of the FCA with purported responsibility for running of the Review scheme.  The well-aired grievances are as follows:-

The Review’s stated intention was to provide “fair and appropriate redress” for the victims of mis-selling.  The published Agreement by which the participant Banks agreed to abide, have been eroded by the existence of separate sub-agreements allowing the participant banks to “write their own rules” in the delivery of the Review scheme.

So what can we expect from Mr Spurin’s management of the GRG Review?

The factual complexities of a GRG review case make it even more imperative to seek legal advice at the outset.  RBS will be fully equipped with an armoury of backroom staff and professional advisers to minimise the frequency and amount of redress payments.  Businesses need to present an extremely robust submission if they are to succeed in a review and if appropriate pursue litigation.

[1] www.fca.org.uk/consumers/financial-services-products/banking/interest-rate-hedging-products/claims-for-consequential-loss

To find out more about the issues raised in this post, or to discuss any queries regarding banking & financ get in touch with our team on help@berg.co.uk or call +44 (0) 161 829 2599.
The information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by berg or any of its partners or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.

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