18th December 2015
An independent report into Royal Bank of Scotland’s restructuring division has been delayed.
The report is investigating serious claims made by government adviser Dr Lawrence Tomlinson that the bank’s ‘global restructuring group’ (GRG) pushed small businesses to restructure into order to boost the bank’s own profits, with many of the businesses collapsing.
The Financial Conduct Authority (FCA) said it would report on its findings this year but has now said it will report ‘as soon as possible in 2016’. Although it gave no reason for the delay, it is speculated that the complexity and the size of the case is to blame.
The outcome is important as it could force RBS to set up a redress scheme for businesses that have been affected.
The FCA said in a statement: ‘The work is ongoing and good progress has been made, and all parties remain keen to complete this review quickly.’
Andrew Tyrie, chair of the Treasury Select Committee, said: ‘Those affected will find this disappointing. The longer the delay, the longer that small firms – possibly forced out of business by GRG – may have to wait to receive compensation.
‘This is because RBS will only take a decision on a possible redress scheme after the regulator’s report is published. The committee will want to examine the report carefully, when it finally appears.’