Report of RBS's GRG unit will not be published until 2016 after delay
The publication of the report into allegations that the Royal Bank of Scotland (RBS), through its Global Restructuring Group (GRG), "killed off" struggling businesses in order to boost its own profits has been delayed until "as soon as possible in 2016"; the UK regulator, the FCA, had previously promised that the report would be fit for publication in 2015. Reports now suggest that the delay has been caused by the regulator's initial lack of comprehension of how complicated the issue was. 

Watchdog report into allegation RBS 'killed off' struggling businesses to boost profits delayed until next year

Publication of an independent report into allegations that Royal Bank of Scotland ‘killed off’ struggling businesses to boost its profits has been delayed until next year.

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The Financial Conduct Authority appointed consultants Mazars and Promontory Financial Group in January last year to look into the explosive claims, made in a report by government adviser Dr Lawrence Tomlinson.

The City watchdog had pledged to publish the report by the end of this year, but confirmed yesterday that the findings will now be published ‘as soon as possible in 2016’.

Insiders said it had underestimated how complex the investigation would be, with hundreds of business customers submitting evidence about the way they were treated by RBS’s turnaround division, Global Restructuring Group.

But the Forum of Private Business campaign group described the hold-up as ‘completely unacceptable’, while Andrew Tyrie, chairman of the Commons Treasury Committee, said small firms may have to wait longer for compensation because RBS will only take a decision on this after the regulators’ report is published.

The latest inquiry is focusing on Tomlinson’s allegations that RBS (up 4.9p at 294.7p) pushed companies into GRG so it could charge higher interest and fees and take over their assets.

It is also looking at criticism made in a report by former Bank of England deputy governor Sir Andrew Large.

Tomlinson’s claims were rejected by law firm Clifford Chance, which RBS appointed to carry out an internal inquiry.

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