Page 235 - Bank Case Studies

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 that "some elements of this

inappropriate treatment of customers should also be

considered systematic." (23)