The Financial Conduct Authority has received the final version of the long awaited report into alleged misconduct at Royal Bank of Scotland’s restructuring division (GRG).
The FCA review was initially commissioned as a result of the report by the former government adviser Lawrence Tomlinson in 2013 which alleged that RBS deliberately forced businesses into financial difficulties so that it could put them into GRG and then benefit from increased fees and punitive interest rates and purchase properties at low prices through its property division, West Register.
However, despite the completion of a draft report in April this year the City regulator has given no timetable for issuing the findings.
The FCA has said
I“This has been a complex and lengthy review – it is therefore important that we do not rush the final stages of this process”
Troublingly customers who were interviewed as part of the review were told that the FCA will determine whether it will publish the report, in full or in part, and that copies will not be provided to customers.
Companies who were affected by GRG need to be very careful that their legal claims do not expire whilst they wait for the findings of the report. We recommend acting now rather than waiting any longer for the findings of the delayed report. If businesses wait until the report is released and there is no recommendation for an adequate compensation scheme for those customers affected, businesses may find themselves with no right to pursue an action through the Courts because the Court limitation period may have expired.
We recommend that customers immediately have the prospects of any potential claim assessed and the limitation date identified in order to help to protect their rights.