The final report into RBS’s GRG – regulator says its hands are tied

After serious concerns about the Royal Bank of Scotland’s Global Restructuring Group were raised by aggrieved small businesses as well as an independent review, the regulator launched an investigation to see if any action could be taken against senior management or RBS. However, the Financial Conduct Authority has concluded its powers “even where the mistreatment of customers has been identified and accepted” are very limited.“No regulation exists to this day to prevent a repetition of deeply unpleasant behaviour meted out to businesses in real difficulties,” comments Adam Samuel.

Adam SamuelBA LLM DipPFS MCISI FCIArb Certs CII (MP&ER) Barrister and Attorney may be contacted atadamsamuel@aol.com.For links to where you can buy the second edition of ‘Consumer Financial Services Complaints and Compensation’, see www.adamsamuel.com/book.

The scandal of RBS’s Global RestructuringGroup rattled on further in June with the FCA’s report on the subject. Like the London & Capital Finance mess, for which the FCA is currently taking a considerable amount of flak, GRG is all about the limits of the regulator’s powers. Parliament has not given it power to regulate lenders’ behaviour towards non-consumer borrowers.