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FCA RBS report leaked

ursaminortaur
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FCA RBS report leaked

#77108

Postby ursaminortaur » August 25th, 2017, 6:16 pm

The full FCA report on the RBS restructuring unit's mistreating of its clients has been leaked.

http://www.bbc.co.uk/news/business-41048691

The RBS department set up to help companies in trouble mistreated nearly all its clients, a leaked report for the Financial Conduct Authority says.
It found some "inappropriate action" - such as interest charges being raised or unnecessary fees added - was experienced by 92% of viable firms seen by RBS's Global Restructuring Group.


Unfortunately it looks like the FCA doesn't think it has any powers to act in this area

The City watchdog also admitted that it may in fact lack the powers to take action when SMEs face mistreatment: "The activities carried out by GRG are largely unregulated; therefore, the FCA's powers are limited in this area.

UncleEbenezer
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Re: FCA RBS report leaked

#77495

Postby UncleEbenezer » August 28th, 2017, 11:16 am

ursaminortaur wrote:It found some "inappropriate action" - such as interest charges being raised or unnecessary fees added - was experienced by 92% of viable firms seen by RBS's Global Restructuring Group.[/i]

92% of what?

Not really a meaningful figure without quite a lot more context.
Unfortunately it looks like the FCA doesn't think it has any powers to act in this area

The City watchdog also admitted that it may in fact lack the powers to take action when SMEs face mistreatment: "The activities carried out by GRG are largely unregulated; therefore, the FCA's powers are limited in this area.

Now that does sound dodgy. Was those companies' banking regulated in the first place? If no, why is the FCA reporting? If yes, it's more disturbing: did RBS unilaterally (or by a trick) move them from a regulated place to an unregulated one? If a bank can do that, what does it say about the regulator's existence?

swynn
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Re: FCA RBS report leaked

#78433

Postby swynn » September 1st, 2017, 1:39 pm

I have made a FoI request to see the report. I suspect when I do see it, the FCA "summary" will turn out to be more of a loose interpretation. It is absurd for it remain unpublished. So we have to make do with summaries and articles about it.


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