No action against the Royal Bank of Scotland and its managers over the activities of the controversial Global Restructuring Group (GRG), the regulator has said.
The Financial Conduct Authority said that his forces were “very limited”.
There is no “reasonable success prospects”, when it came to actions against executives, it added.
A review in the GRG turnaround unit published earlier this year, did miss found be thousands of small companies.
Some companies said they were forced into bankruptcy, and were stripped of their assets after they were transferred, in the controversial separation between 2008 and 2013.
RBS Chairman Sir Howard Davies, welcomed the FCA to the conclusion that it will take no further action.
He said the bank would wait for the publication of the FCA.is full account, and would learn to “think about their results, and other lessons from what was a very challenging time for the bank, its customers and the wider economy”
RBS has so far offered a total of £125m victims of GRG.’Defect’ Practices
FCA chief executive Andrew Bailey said: “It is important to recognize that the business of GRG was largely unregulated, the FCA, the powers to take action in such circumstances, even to the extent that the mistreatment of customers are identified and are accepted, are very limited.
“The act was, therefore, always difficult and challenging.”The hotel, the RBS taken and sold to the RBS…
An independent review commissioned by the FCA in the Royal Bank of Scotland (RBS) to transfer found the treatment of small and medium-sized enterprises customers restructuring unit was no evidence that the bank transferred to be aware-customers, GRG, in order to profit from their restructuring or insolvency.
Instead of a review, conducted by Promontory Financial Group and accountancy firm Mazars, pointed to “inadequate” aspects of GRG’s culture, governance and practices, led to the “widespread and systematic” inappropriate treatment of customers.
GRG has helped marketed as expert services to struggling small businesses.
Some of the companies that are transmitted by the RBS in the restructuring of the division were not viable, but of those that were evaluated, the sound, the perspectives, the FCA found that six have been damaged by the GRG, the management, through higher interest rates and new fees.
The FCA told the BBC, to explain a more complete report why the controller was not to be traded, released later this year.
In the meantime, the FCA continues to be the action monitor, that RBS taking and review of the bank, a scheme to compensate the victims.
“I appreciate that many of the GRG will have customers frustrated over this decision, but we investigated all available options before you said to this conclusion,” Mr. Bailey.
“The fact that we do not take measures, in any way, the behaviour of RBS does not tolerate. We expect high standards from the firms we regulate and RBS also fell short in its treatment of GRG customers.”
Nicky Morgan, the Chairman of the Parliament’s Treasury Committee said that for those caught in the GRG actions on the message, not to act the FCA is able, would be “disappointing and confusing”.
“This shows the need for a change in how credit for [small and medium-sized enterprises] is regulated.
“The government should stand ready to implement appropriate legislation is necessary, if you see the result of the current reports about the legal protection and should also strongly consider what additional powers of the FCA is required to act in cases such as the GRG.”