The Financial Conduct Authority (FCA) has turned down the Treasury Committee’s request to publish report into treatment of RBS’s business customers.
Andrew Bailey, FCA chief executive, has responded to Nicky Morgan MP, chair of the Treasury Committee, about the leak of the skilled persons’ report (Section 166) into the treatment of customers in RBS’ Global Restructuring Group (GRG).
In his letter, Bailey states that he does not believe the public interest “is best served by us [the FCA] publishing the full report”, and reiterates the FCA’s “intention to publish a detailed summary of the Section 166 report”.
The Guardian reported that Bailey said publishing the report could also undermine the FCA’s ability to supervise firms because reviews are conducted on the basis that they will remain private.
The FCA boss said that promise of privacy meant firms don’t try to withhold information and the watchdog doesn’t have to use its legal powers to force its release. “I am very keen that this situation should continue and that it would not be in the public interest to limit the effectiveness of this process,” Bailey said.
Morgan said: “Seven years since it was shut down, there are still conflicting accounts of what really happened to customers referred to GRG. The leak and selective reporting of the skilled persons’ report, which the FCA has had for almost a year, has added to the confusion. This situation is unsustainable.
“The Committee recognises that such reports are not intended for publication, and should in normal circumstances remain confidential.
“But the report is now in the hands of an unknown number of third parties. If closure is ever to be brought to this long-running issue, Parliament and the public need the account ordered by the regulator. And so we consider that the public interest in publication in this specific case is overwhelming.
“Following my letter to Mr Bailey earlier this month, Committee colleagues and I have been overwhelmed by messages from those who consider that their businesses and livelihoods were destroyed by RBS’ GRG. Those affected have a right to know what really happened.
“The Committee is due to see the FCA next month, and I have no doubt that these issues will be raised.”