The Courier & Advertiser (Fife Edition)
RBS escapes censure over restructuring unit GRG
Royal Bank of Scotland and its senior managers will not face disciplinary action over the treatment of small firms in its controversial Global Restructuring Group.
The Financial Conduct Authority (FCA) has concluded its powers to discipline anyone for misconduct do not apply and added action against senior management in GRG for lack of fitness and propriety would be unlikely to succeed.
It said it had taken independent, external legal advice on its decisions, which found that GRG’s activities were not within its remit.
FCA chief executive Andrew Bailey said: “It is important to recognise that the business of GRG was largely unregulated and the FCA’s powers to take action in such circumstances, even where the mistreatment of customers has been identified and accepted, are very limited.
“Taking action was therefore always going to be difficult and challenging.”
He added: “I appreciate that many GRG customers will be frustrated by this decision, but we have explored all the options available to us before arriving at this conclusion.”
RBS chairman Howard Davies said: “The board welcomes the FCA’s confirmation that it has concluded its investigation into the bank and that no further action will be taken.
“We await the publication of the FCA’s full account and will reflect carefully on its findings to learn any further lessons from what was a hugely challenging time for the bank, its customers and the wider economy.
“The board continues to focus on putting things right for customers through our complaints process and ensuring past mistakes cannot be repeated. The way the bank deals with business customers in financial difficulty is fundamentally different now.”