Parliamentary Questions


Parliamentary Questions


Bill Esterson MP – 16 May 2018 (144893)

Royal Bank of Scotland: Small Businesses

To ask Mr Chancellor of the Exchequer, with reference to the Answer of 15 May 2018 to Question 142837 on Royal Bank of Scotland: Small Businesses, what assessment he has made of the adequacy of the compensation scheme for SME customers of the Royal Bank of Scotland.

Answered by: John Glen MP

RBS’ recent commitments to establish an independent appeal process for consequential loss claims and to stand aside from any money that might be returned to them from redress paid to insolvent companies are important steps in improving the operation and transparency of the redress scheme for businesses affected by RBS‘ Global Restructuring Group. The Financial Conduct Authority (FCA) has previously confirmed that RBS’ processes as part of the compensation scheme are appropriate steps for the bank to take, and the Treasury is in regular contact with the FCA about how the voluntary scheme is progressing.


Bill Esterson MP – 10 May 2018 (142837)

Royal Bank of Scotland: Small Businesses

To ask Mr Chancellor of the Exchequer, with reference to the oral contribution of the Economic Secretary to the Treasury of 10 March 2018, Official Report, column 978, what compensation he proposes be provided to the small business customers of Royal Bank of Scotland who were subject to inappropriate behaviour by that company.

Answered by: John Glen MP

In November 2016 the Royal Bank of Scotland (RBS) established a complaints process for small and medium-sized enterprises in their Global Restructuring Group (GRG) between 2008-2013, overseen by an independent third party, and took the decision to automatically refund complex fees paid by relevant customers to GRG during that period.

RBS have set aside £400m for this scheme. Following a meeting with the Chief Executive of RBS I received a letter on 9 May stating that RBS have also committed to setting up an independent appeal process for consequential loss claims under the redress scheme.


Bill Esterson MP – 06 February 2018 (1270149)

Royal Bank of Scotland: Small Businesses

To ask Mr Chancellor of the Exchequer, pursuant to the oral contribution of the hon. Member for Sefton Central of 6 February 2018, Official Report column 1388, Point of Order whether there are discrepancies between the summary and the full contents of the section 166 report on RBS‘s treatment of small business customers; and if he will make a statement.

Answered by: John Glen MP

The Financial Conduct Authority (FCA) has published its final summary of the independent review of the Royal Bank of Scotland’s (RBS) treatment of small and medium-sized enterprise customers transferred to its Global Restructuring Group (GRG). The review is a matter for the FCA, which is operationally independent of Government.

The FCA announced it is investigating the matters arising from the review and focusing on whether there is any basis for it to take further action. It would not be appropriate for the Government to comment further whilst this process is ongoing.


Sir Michael Fallon – 17 January 2018 (123417)

Global Restructuring Group: Compensation

To ask Mr Chancellor of the Exchequer, what steps he is taking to progress the RBS Global Restructuring Group redress scheme.

Answered by: John Glen MP

In November 2016 the Royal Bank of Scotland (RBS) announced, with the agreement of the Financial Conduct Authority, a Global Restructuring Group (GRG) complaints process overseen by an Independent Third Party, and an automatic refund of complex fees paid by relevant customers in GRG between 2008 and 2013. This scheme is a commercial matter for RBS, and the Government has played no role in the establishment or operation of this scheme.

The Government’s shareholding in RBS is managed commercially and at arm’s length by UK Financial Investments (UKFI). RBS retains its own board which is responsible for commercial and operational decisions.