Long overdue report on RBS turnaround unit finally lands on watchdog’s desk
The City watchdog has revealed it has received a long-awaited final report into RBS' old business turnaround unit.
The Financial Conduct Authority (FCA) had initially been expected to publish review outcomes into RBS' now defunct Global Restructuring Group (GRG) by the end of 2015. However, the report, which is being compiled by "independent skilled persons" Promontory Financial Group and Mazars, has since been delayed.
Now the FCA has updated its website to note it has received the final report, although it added there are a number of steps it will need to take before it shares the final findings.
"This has been a complex and lengthy review – it is therefore important that we do not rush the final stages of this process," the website noted.
The website was updated yesterday, but this was first reported by Reuters today.
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The FCA review was initially sparked by a 2013 report from former government adviser Lawrence Tomlinson, alleging RBS purposely pushed small businesses into financial difficulties so they could be put into the GRG. This then benefited the bank through further fees, increased margins and allowing it to purchase properties at low prices through its property division, West Register.
The FCA first announced it would be running the GRG review in January 2014. It received a draft version of the final report in April this year.
Earlier this week, it was revealed that legal action on behalf of roughly 140 parties, with total claims potentially passing the £1bn mark, was set to be filed early next year.
An RBS spokesperson said: "We continue to work with the FCA on this review and will respond in full when the conclusions have been reached."