Page 236 - Bank Case Studies

Between 2005 and 2013 RBS put 16,000 business customers

into its GRG division, telling many it was there to help turn

their fortunes around.

However, the FCA commented that the bank had instead

systematically put its interests ahead of its customers.

But, despite these serious failings and inappropriate

behaviour identified by the FCA, the regulator has limited

powers to punish RBS as it does not regulate the practice of
restructuring struggling businesses.

RBS responded by announcing that it would refund complex

management fees worth £400 million to small and medium-

sized enterprises (SMEs) that went through its restructuring

process.

McEwan said the bank is "very sorry" for what happened to

businesses that went through RBS' restructuring arm

between 2008 and 2013, and insisted that: "The culture,

structure and way RBS operates today is fundamentally

different from the period under review."

There are however, many questions for the bank and

regulator to answer such as:

“• Why has RBS so vehemently denied the

allegations of the Tomlinson Report when the

bank was in possession of the evidence at the

time?

• Why were RBS’ ‘independent’ reviewers, Clifford
Chance, not given access to these documents

ahead of the publication of their report?