UK's Financial Conduct Authority Must Learn Lessons From Tragic GRG Saga, Say UK Small Firms

Responding to the announcement that the Treasury Committee has used parliamentary powers to order the full Financial Conduct Authority (FCA) skilled persons’ report on RBS’ Global Restructuring Group (GRG), Federation of Small Businesses (FSB) National Chairman Mike Cherry, said:

“It’s been four years since the FCA appointed Promontory to put together a report on GRG. Victims have been left waiting far too long to see its findings. Hundreds of small business owners who had their lives destroyed by GRG are still waiting on compensation. This report could help secure the redress they’re due. In any case, the truth is the very least they deserve.     

“GRG management should have tackled the “systematic” unfair treatment of small firms that the report identifies. This total failure of corporate governance shouldn’t have been possible. We now need to create a climate where similar failings can’t happen again.

“The FCA should learn lessons from this tragic saga. The Treasury Committee is right to say it “lost control” of this investigation.

“Equally, we need to question why there has been no meaningful change to regulation of commercial lending since the financial crash. The FCA recommendations for increasing the remit of the Financial Ombudsman are wafer thin. If implemented, they wouldn’t provide protection for victims of any future GRG-type scenario.

“The FCA has said the findings of the second phase of its GRG investigation should be announced within weeks. We look forward to it meeting that deadline.”