Page 27 - RBS GRG F Case Study

FCA

The FCA report, carried out by two

firms of consultants, Mazar's and
Promontory, had been completed

and passed to the Financial Conduct Authority, but FCA

chief executive Andrew Bailey has refused to name a date
of publication.

In November 2016 as a result of growing pressure, the

Financial Conduct Authority (FCA) published an interim

summary of its report which looked into the treatment of

small businesses within the GRG.

The FCA concluded RBS "did not set out to artificially
engineer" SMEs to fall into the GRG and "there was not a

widespread practice of identifying customers for transfer
for inappropriate reasons, such as their potential value to

GRG."

However, the report revealed that RBS prioritised

boosting profits, over regaining the financial health of

ailing businesses. (See Appendix 1) There was
"widespread" inappropriate practice, including "failure to

support SME businesses in a manner consistent with

good turnaround practice," "placing an undue focus on
pricing increases and debt reduction without due

consideration to the longer term viability of customers,"

and serious communication failings. Moreover, it found