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FCA refuses to publish RBS report; hands copy to Treasury committee
The UK's Financial Conduct Authority on Friday refused to publish its report into Royal Bank of Scotland's treatment of small businesses after the 2008 economic crisis, but handed over a copy to parliament's Treasury committee as requested on Thursday.
In a letter to the committee chair Nicky Morgan, the FCA's chief executive Andrew Bailey said he could not publish the report as those implicated in it had not been given the chance to respond to any allegations.
"I do want to make clear that it is not our intention to frustrate or impede the work of the committee, quite the reverse in fact," Bailey wrote.
"With that in mind we are providing the report as required."
Morgan said her committee would meet on February 20 and she would be "asking members to agree to publish the final, unredacted report under parliamentary privilege as soon as possible".
She had on Thursday ordered the FCA to publish or face contempt of parliament. The Conservative MP added that she would be seeking approval from her committee to make the document public.
Tensions between the committee and regulator heightened after a full copy of the report was leaked overnight and published online. A copy has been seen by Web Financial Group, publisher of this website.
It details claims of behaviour by RBS's Global Restructuring Group (GRG) that created financial distress for companies the division was actually meant to be helping.
One example in the report highlights the treatment of a family-run business that was transferred to GRG. The restructuring agreement included an "increased margin, arrangement fees, legal fees and monthly management fees, as well as a 15% equity participation agreement".
"Despite this, shortly after transfer, an internal email to the GRG relationship manager stated: 'Pls start charging weekly excess/monitoring fees - £2k per week seems reasonable. It will concentrate customers' minds/galvanise them into action!!'"
Morgan said the FCA had "completely lost control of the publication process".
If the FCA doesn't publish or provide the report by Friday, it will have breached an order of the House of Commons and may be found in contempt of Parliament."