SMEs refuse to let RBS off the hook

Royal Bank of Scotland could face new action over its treatment of small businesses during the financial crisis, despite the closure last month of an official inquiry into the scandal.

Royal Bank of Scotland could face new action over its treatment of small businesses during the financial crisis, despite the closure last month of an official inquiry into the scandal.

The SME Alliance, a small-business group with a strong track record of championing the interests of smaller firms, has announced its own investigation into RBS. The bank has been accused of severely damaging small businesses placed in its Global Restructuring Group (GRG) unit for struggling companies following the credit crunch.

The decision by the Financial Conduct Authority (FCA), the City regulator, not to take further action against RBS, announced last month, left many small firms feeling that justice had not been done, said the SME Alliance.

It is appealing for firms to provide it with more evidence of RBS's wrongdoing in particular to substantiate claims that the bank insisted on personal guarantees for business loans. This could help the FCA to intervene, as it has previously warned that many of the complaints about RBS fall outside its jurisdiction.

The FCA has faced criticism for its handling of the investigation, whichtook four years to complete; RBS argues that all accusations of wrongdoing have been properly investigated and resolved.

Recommended

The end-of-tax-year to-do list for small businesses
Small business

The end-of-tax-year to-do list for small businesses

If you run a business, get on top of your paperwork before 2020-2021 draws to a close.
1 Apr 2021
Sunak sticks with SEISS support scheme for the self-employed
Small business

Sunak sticks with SEISS support scheme for the self-employed

The chancellor has extended the SEISS scheme to help the self-employed through pandemic-induced difficulties.
19 Mar 2021
What's behind the collapse of Greensill Capital, and why does it matter?
UK stockmarkets

What's behind the collapse of Greensill Capital, and why does it matter?

A financial company involved in opaque products that repackaged loans has gone into administration. Is there a bigger systemic risk here?
13 Mar 2021
The IR35 reprieve is over – what freelancers should do now
Small business

The IR35 reprieve is over – what freelancers should do now

The government delayed introducing IR35 tax reforms for freelancers amid the Covid-19 chaos. But they come into effect early next month.
9 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
Four investment trusts for income investors to buy now
Investment trusts

Four investment trusts for income investors to buy now

Some high-yielding listed lending funds have come through the crisis with flying colours. David Stevenson picks four of the best.
12 Apr 2021
Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021