Having considered the two independent reports published this week by Sir Andrew Large and Dr Lawrence Tomlinson into the banks practices the FCA was left concerned as to whether RBS has treated commercial customers appropriately.
Whilst commercial lending is not a regulated activity under the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 the FCA has decided to take action.
It has agreed with RBS that an independent skilled person will be appointed in accordance with the FCA’s power under section 166 of FSMA to review the allegations in the reports against RBS’ practices and report to the FCA within an agreed timescale.
If the findings from the review reveal issues which come within the FCA’s remit, the FCA has said it will consider further regulatory measures.
Separately, it is writing to all other relevant banks seeking confirmation that they are satisfied they do not engage in any of the poor practices alleged in the reports.
Clive Adamson, director of supervision at the FCA, said: “These allegations, if proved, raise serious concerns about how banks’ treat their customers.
“An SME’s relationship with its bank is essential for any business to have a chance to succeed, and claims like the ones made threaten to undermine that.
“We expect all firms to act with integrity and put customers at the heart of their business.”
