Nicky Morgan says watchdog has "lost control" of RBS GRG report as she orders FCA to provide it to Parliament

British Government Ministers Attend The Weekly Cabinet Meeting
Nicky Morgan has severely criticised the FCA for its handling of the RBS scandal (Source: Getty)

The Treasury Select Committee will publish the explosive report into Royal Bank of Scotland's global restructuring unit (RBS GRG) on Tuesday, with its chair Nicky Morgan saying the City watchdog has "lost control" of process.

The Financial Conduct Authority (FCA) has until Friday to provide the report, which details allegations of serious wrongdoing by former employees of the state-owned bank, or else be found in contempt of Parliament.

Morgan said: “A version of the report is now in the public domain. The FCA has completely lost control of the publication process."

Read more: FCA accused of kowtowing to banks after refusing to publish RBS GRG report

But copies of the report have already been shared widely. City A.M. has seen a copy of the 361-page document, while one of the alleged victims published the entire thing on his blog last night.

Several months ago the BBC revealed it had received a version of the report, prompting Morgan to force the FCA to publish its summary. However earlier this month, MP Clive Lewis said he had obtained a copy and argued that it revealed the summary was a "sanitised" version of the full thing.

Read more: MP claims parliament has been misled over RBS-GRG

Morgan today wrote to the FCA to compel them to provide it to the committee. If her committee colleagues agree – which is highly likely – the report will then be published using parliamentary privilege, without any redactions.

Morgan said: “The committee will meet when Parliament returns on Tuesday 20 February. At that meeting, I will be asking members to agree to publish the final, unredacted report under parliamentary privilege as soon as possible.”

The FCA has faced criticism from across the political spectrum for its handling of the report into scandal. The report was commissioned by consulting firm Promontory over four years ago, and completed in 2016, but has not been revealed to the general public.

Some of the findings from the report have already been made public, including one memo by an ex-RBS staff member which told colleagues to "let customers hang themselves".

The FCA says it is legally impossible for it to publish the report without the consent of every potentially identifiable individual. It has also warned the Treasury Select Committee that publication of the report might prejudice future reports.

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