Treasury select committee demands FCA reveal findings of RBS-GRG report

Iain Gilbert Sharecast | 13 Oct, 2017 12:39 | | |

  • 282.30
  • 0.79%2.20
  • Max: 286.20
  • Min: 280.84
  • Volume: 15,089,047
  • MM 200 : n/a
17:17 20/10/17
  • 7,523.23
  • 0.00%0.19
  • Max: 7,560.04
  • Min: 7,517.07
  • Volume: 0
  • MM 200 : n/a
17:18 20/10/17
  • 4,518.33
  • 0.96%42.79
  • Max: 4,529.42
  • Min: 4,475.54
  • Volume: 0
  • MM 200 : n/a
17:18 20/10/17
  • 4,180.73
  • 0.02%0.63
  • Max: 4,198.47
  • Min: 4,177.51
  • Volume: 0
  • MM 200 : n/a
17:18 20/10/17
  • 4,127.92
  • 0.02%0.71
  • Max: 4,144.79
  • Min: 4,124.99
  • Volume: 0
  • MM 200 : n/a
17:20 20/10/17

Nicky Morgan, chairperson of the Treasury select committee warned the Financial Conduct Authority (FCA) that it would invoke rarely-used powers to compel the regulator into disclosing the details of its report on the Royal Bank of Scotland's treatment of customers.

Morgan penned a letter to Andrew Bailey, the FCA's chief executive, on Thursday calling for "maximum transparency" in regards to the watchdog's report into the collapsed Global Restructuring Group (GRG), which was alleged to have "artificially distressed" otherwise viable businesses, forcing them into administration, receivership and liquidation through its actions.

Although the report had yet to be published, despite being started back in 2014, portions had been leaked to the press, with threats of more to come.

Morgan, Conservative Party MP for Loughborough, appointed Andrew Green QC to compare the FCA's unreleased report against the underlying report.

The letter stated that if Green felt the summary did not reflect the underlying report in a "fair or meaningful" manner, if he thought the summary had "meaningful omissions" or if the FCA point-blank denied him access to the documentation then "the committee may use its formal powers to require the FCA to produce the report."

She said, select committees were entitled to "send for persons, papers and records", and had the power to slap sanctions on non-compliant bodies.

"In any case, the long-awaited summary should be published as soon as possible," Morgan added. "The committee's review is not a reason for further delays."

Commenting on the matter, an FCA spokesperson said, "The FCA has committed to publishing a detailed summary of the GRG report. To provide assurance on the summary we previously asked an independent external counsel to confirm that it is a fair and balanced account of the full report's findings."

However, a spokesman for the RBS-GRG Action Group, which represented more than 500 companies, said it would accept "nothing less than publication of the full report."

"When this report was commissioned, everyone expected it to be published. The FCA itself said it intended to publish. The only reason the FCA doesn’t want to publish now is because it doesn't like the report's contents," he said.

"Let's be clear about the public interest. The activities of RBS's Global Restructuring Group and its rogue bankers did immense harm to the British economy. Even RBS itself has admitted that serious mistakes were made," he continued. "A precis of this report, with all the telling detail taken out, is not good enough for the thousands of people who livelihoods, jobs and businesses were destroyed by RBS."

As of 1030 BST, RBS shares were down 0.69% to 272.30p.

More news

18:44 FX round-up: Dollar boosted by tax plans, pound rallies on Brexit hopes

President Donald Trump's tax reforms made the dollar the early story, before a sterling narrative took over as Brexit developments filtered through from the EU 27 in Brussels.

18:01 President Trump wrongly links rise of UK crime to 'radical Islamic terror'

US President Donald Trump was accused of fuelling hate crimes after he said the UK crime rate was linked to "radical Islamic terror".

17:49 Europe close: Stocks end near session lows despite US tax reform optimism

European stocks finished near their worst levels of the day despite optimism regarding prospects for the US economy.

17:36 London close: Footsie ends flat as pound bounces back

London stocks finished the Friday session almost exactly flat despite encouraging noises emerging from Brussels mingled with optimism stateside over proposed tax reforms.

17:10 Berenberg ups Cobham target but says premium valuation "unwarranted"

Despite Cobham share's outperformance over the past six months, Berenberg cautioned clients about the near-term strength of various of the firm's end-markets, alongside operational challenges that would require time to resolve and, for a time, scupper hopes that the dividend would be reinstated.

17:02 Octagonal 'extremely pleased' as it reports record revenue and profits

Octagonal updated the market on its trading on Friday, based on the unaudited interim figures for the six months to 30 September for its wholly-owned subsidiary, Global Investment Strategy UK, saying it was “extremely pleased” with the record revenues and profits achieved.

16:56 Marlowe trading in line as acquisitions integrate 'well'

Support services group Marlowe updated the market on its trading for the six months to 30 September on Friday, saying trading in the first six months of the financial year was in line with board expectations.

16:53 Ncondezi agrees non-binding development offer with CMEC and GE

Ncondezi Energy announced on Friday that it has agreed - in principle - to the terms of a non-binding offer with China Machinery Engineering Corporation and General Electric South Africa to enter into exclusive negotiations to develop, construct and operate the integrated Ncondezi 300MW coal-fired power project and open pit coal mine in Tete, Mozambique.

16:53 Virgin Money's growth prospects not reflected in share price, Barclays says

Analysts at Barclays Research believe Virgin Money's growth prospects are not reflected in the share price.

16:45 Bacanora clears regulatory hurdle at Sonora lithium project

Lithium exploration and development company Bacanora Minerals announced on Friday that the environmental impact statement - the ‘manifestacion de impacto ambiental’ (MIA) - for its flagship Sonora Project in Mexico has been approved by SEMARNAT, the Environment Ministry of Mexico.