Long-awaited 2016 report into the actions of RBS’s distressed business unit finds that governance failings and a lack of oversight contributed to the inappropriate treatment of struggling SMEs.
RBS. Photo: Elliott Brown, Flickr.
Governance and oversight failings in RBS’s distressed debt division led to “widespread inappropriate treatment” of small business customers, according to a report published by the Treasury committee yesterday (20th February).
The report, produced by Promontory on behalf of the Financial Conduct Authority (FCA) and completed in September 2016, sets out the treatment of SMEs in financial difficulty that were placed into RBS’s Global Restructuring Group (GRG) between 2008 and 2013.
Of the several thousand businesses sampled by Promontory, one in six were likely to have suffered “material financial distress” due to poor treatmen
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