SME Alliance report aims to get justice after RBS small business scandal

Royalbankofscotland’shopes of putting another major scandal to rest may be upended by a small business group that wants to see executives held to account. The SME Alliance – a small business group that lobbies for fair treatment by banks and advisers – is launching its own investigation into the treatment of small firms by the bank’s now-defunct Global Restructuring Group (GRG).

Efforts are being led in part by Nikki Turner, an SME Alliance director whose report in 2009 is credited with helping uncover fraud at HBOS in Reading. That case led to corrupt financiers being jailed in conncetion with a £245 million loans scam which destroyed several businesses.

The SME Alliance’s report into the GRG aims to gather “evidence of dishonesty and lack of integrity by RBS executives” which it hopes will allow the Financial Conduct Authority (FCA), which currently does not regulate commercial lending to SMES, to take disciplinary action. The allegations will be laid out in a report to be handed to the FCA by the end of the year.

Ms Turner said: “Our members are extremely frustrated that the regulators are unable to take any action against RBS and its bankers … we aim to help them ensure the guilty bankers are brought to book.”

RBS and the FCA declined to comment.