MPs demand study of RBS scandal is published

THE CHAIR of an influential committee of MPs has demanded the City’s financial watchdog urgently publish its leaked report into the scandal at Royal Bank of Scotland’s controversial restructuring unit.

The BBC reported late last month that the 361-page leaked report showed 92 per cent of “viable” firms seen by the unit experienced “inappropriate action”, such as interest charges being raised or unnecessary fees imposed. It was also reported that only 10 per cent of its business customers ever returned to the main bank.

Nicky Morgan, who heads up the Treasury Select Committee, warned last month’s leak to the BBC has left the Financial Conduct Authority (FCA) with “no control over the timing or content” of further public disclosures from the report.

In a letter to FCA boss Andrew Bailey, she urged him to secure approval from Royal Bank of Scotland (RBS) for full publication of the report “without delay”. She asked the FCA to update the committee on its inquiry into the leak itself and if the regulator “bears any responsibility”.

Ms Morgan’s call comes as lawyers for businesses suing RBS, as well as the SME Alliance, which represents small businesses affected by the scandal, have also demanded publication.

The study was commissioned by the regulator four years ago as part of its inquiry into the Global Restructuring Group (GRG) a business support unit set up in the early nineties. The FCA pledged to publish a “full account” from its report, but has so far refused to make it public.

Ms Morgan said: “Nearly a year later, and nearly four years since the report was commissioned, we are still waiting for answers. The report itself is now in the hands of an unknown number of third parties.

“The FCA now has no control over the timing or content of further public disclosures from it.

“The balance has tipped firmly in favour of full publication. I have written to Mr Bailey to urge him to secure the approval of RBS to do so, without delay.”