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UK lawmakers publish full report on alleged RBS abuse of small businesses

The U.K. Treasury Select Committee published the "final, unredacted report" into the alleged mistreatment of small business customers by Royal Bank of Scotland Group Plc's now-defunct Global Restructuring Group on Feb. 20.

The committee, chaired by Nicky Morgan, released the so-called skilled persons' report Feb. 20 after the U.K. Financial Conduct Authority handed it over to the committee on Feb. 16. After publishing an interim summary in October 2017, the regulator had said it could not publish the full 362-page document or give it to the committee because it was unable to secure the required consents of the RBS officials named in it.

The report, which was commissioned by the FCA to look into the conduct of the former turnaround division, found "widespread inappropriate treatment" of small and medium-sized enterprises, causing "material financial distress" in one in six of them.

Morgan noted that the findings in the report were "disgraceful" and that the "overarching priority at all levels" of Global Restructuring Group was to generate income for RBS, instead of focusing on the health and strength of its customers.

Morgan said the committee will continue to monitor the FCA's further probe into the division and will keep a close eye on RBS' complaints process to see if the lender is providing fair and reasonable compensation to the mistreated customers.