Regulator furthers probe into RBS


An update on the Financial Conduct Authority's investigation into RBS.

The City regulator has said this morning that it's appointed global consulting firm Promontory Financial Group and financial advisory company Mazars to conduct a report into RBS' treatment of struggling customers.

It'll also look at the claims made in the reports by Dr Lawrence Tomlinson and Sir Andrew Large, made in November of last year.

The reports alleged that the bailed-out bank deliberately forced viable small and medium-sized businesses into difficulties in order to make profits for itself.

The FCA says:

The first stage of the review will consider RBS’ treatment of a sample of customers referred to its Global Restructuring Group. This will include some cases where customers have already raised concerns with Dr Tomlinson, the Department of Business, Innovation and Skills and the FCA.

The review will also consider whether any poor practices identified are widespread and systematic. If this is the case, the second stage of the review will identify the root cause of these issues and make recommendations to address any shortcomings identified.

It adds that, while commercial lending is not an activity it regulates, it will consider further action if the findings reveal issues that do come under its remit.

The regulator will publish the outcomes of the review in the third quarter of 2014.