FCA publishes Final Summary of RBS’s treatment of SME customers referred to its Global Restructuring Group

In November 2016 the FCA published a high level summary of the main findings and the key conclusions of the Skilled Person’s Report and on the 23 October 2017 we published the Interim Summary[2].

Following consultation with the Treasury Committee (TC) the FCA provided the Specialist Advisers appointed by the TC, Andrew Green QC and Fraser Campbell, with the Skilled Person’s Report and other documents. The Specialist Advisers had to report to the TC on whether the Interim Summary published was a fair and balanced account of the findings of the Skilled Person’s Report. The Specialist Advisers report can be found here[3].

The Specialist Advisers recommended a number of drafting changes which the FCA has accepted and are reflected in the Final Summary.

Following a hearing before the Treasury Committee on 31 October 2017 the FCA has also written to the TC responding to a number of questions the Committee asked. The letter and the Final Summary include new information that was not previously in the Interim Summary.

The FCA continues to investigate the matters arising from the Skilled Person’s Report and is focussing on whether there is any basis for further action within our powers.

Notes to editors

1. The Final Summary[1] and the Interim Summary[2] and Specialist Advisers[3] report.
2. Details of RBS’s complaints process and refund of complex fees for SME customers in GRG[4].
3. In November 2013 Dr Lawrence Tomlinson published a report Banks’ Lending Practices: Treatment of Businesses in distress. This made serious allegations against RBS over the treatment of SME customers transferred to GRG.
4. In January 2014, the FCA appointed Promontory as a Skilled Person under section 166 of the Financial Services and Markets Act 2000 (FSMA) to conduct an independent review of RBS’s treatment of SME customers transferred to GRG between 2008 and 2013. Promontory, with the assistance of its sub-contractor Mazars, provided its final report to the FCA in September 2016 (the Skilled Person’s Report).
5. On 1 April 2013, the FCA became responsible for the conduct supervision of all regulated financial firms and the prudential supervision of those not supervised by the Prudential Regulation Authority (PRA).
6. The FCA has an overarching strategic objective of ensuring the relevant markets function well. To support this it has three operational objectives: to secure an appropriate degree of protection for consumers; to protect and enhance the integrity of the UK financial system; and to promote effective competition in the interests of consumers.
7. Find out more information about the FCA[5].