As the Bank announce a compensation scheme for its GRG customers, the regulator shares its’ high level findings from S 166 report.
Pressure has been increasing on the Financial Conduct Authority to share its report ever since the damning RBS files were revealed by the BuzzFeed News and BBC Newsnight investigation. Now it seems the regulator has finally listened to those calling for action and has revealed the high level findings of its report.
In a statement published on its website today the regulator set out a number of findings including that the bank did not set out to artificially engineer a position to cause or facilitate the transfer of a customer to GRG and that there was not a widespread practice of identifying customers for transfer for inappropriate reasons, such as their potential value to GRG, rather than their level of distress. On the other hand the report did find that RBS had treated it’s SME customers inappropriately in a number of areas including basic issues such as communication and handling of complaints, to failure properly to deal with conflicts and valuations. West Register also comes in for criticism.
These are two of the more serious allegations aimed at the Bank and the FCA’s view will come as a disappointment to those hoping the Bank would finally be called to account.
Meanwhile RBS has announced a fund of £400m has been put aside to compensate GRG customers. Although this is a figure already been mooted, more detail has been announced including the news that the bank will automatically refund complex fees paid by small business GRG customers between 2008 and 2013. The bank will also set up a new complaints process with Chief Executive Ross McEwan saying “We have acknowledged for some time that mistakes were made. Some of our customers went through what was a traumatic and painful experience as a result of the crisis”
It’s a step in the right direction for GRG victims who have long awaited action from the regulator and the Bank but there are still unanswered questions, despite the FCA’s findings, the full report remains under wraps and the bank are yet to reveal more details of exactly how their ‘compensation’ scheme will work including whether it covers the consequential losses of RBS’ victims.
If you have been affected by the activities of RBS and believe you are entitled to compensation then speak to us today free of charge to progress your claim. Our team of legal experts have secured tens of millions of pounds compensations for businesses across the UK and are committed to getting the best possible results for our clients.
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