Royal Bank of Scotland Group PLC will launch an independent appeal process to consider the consequential losses of its redress scheme for victims of its now-defunct Global Restructuring Group division, The Times reported, citing a letter from RBS CEO Ross McEwan to City Minister John Glen.
The move follows heavy criticism of the way the GRG complaints process was being run, and marks a change of tack by the bank, which had previously resisted calls to provide third-party oversight of the consequential loss aspect of the redress scheme.
Another aspect of the compensation program being criticized was the fact that payouts to companies in administration could end up back to RBS given its position as creditor. In the letter, McEwan said any compensation funds returned to the lender will be given to charity.
As of May 2, RBS had received 1,276 GRG complaints, and the lender has upheld fewer than one in five claims of mistreatment. McEwan said RBS can now address the remainder of the claims at a rate of roughly 100 per month, The Times said.
RBS is in discussions with former High Court Judge William Blackburne, who is providing independent oversight of the rest of the compensation process, about taking on the wider remit, the report added.