Parliamentary Questions


Parliamentary Questions


Martin Whitfield MP – 21 February 2019 (224359)

Treasury

To ask the Chancellor of the Exchequer, if he will publish the (a) focused assets covered under the Asset Protection Agency and (b) focused assets underwritten by the Asset Protection Agency that were transferred to West Register between 2009 and 2012.

Answered by: John Glen MP

The Asset Protection Agency (APA) was set up in 2009 to manage the Asset Protection Scheme (APS), with the objective of maintaining financial stability and protecting taxpayers’ interests by helping participating banks manage their exposure to high-risk assets.

The 2009-10 APA Annual Reports and Accounts state that the APS initially provided protection on £282bn worth of assets on the consolidated balance sheet of the Royal Bank of Scotland Group plc. The detail of these assets is commercially sensitive. The Annual Report can be found here: https://webarchive.nationalarchives.gov.uk/20130129110533/http://www.hm-treasury.gov.uk/apa.htm

To develop a more streamlined and better focused monitoring process for these assets, in 2011 and 2012 the APA stopped reviewing certain low risk assets and instead focused on a number of larger, high risk assets, known as the “Focus List”. Further information on the make-up of the Focus List can be found at http://data.parliament.uk/DepositedPapers/Files/DEP2012-0368/DEP2012-0368.pdf and at https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/229293/0120.pdf.

Further detail on the assets underwritten by the APA, including the assets that were transferred to West Register, an RBS subsidiary, between 2009 and 2012, is commercially sensitive information in relation to RBS’ customers.

 


Martin Whitfield MP – 20 February 2019 (224039)

Treasury

To ask the Chancellor of the Exchequer, if he will publish in unredacted form the Asset Protection Agency’s Framework Document, published on 7 December 2009.

Answered by: John Glen MP

The Asset Protection Agency (APA) was set up in 2009 to manage the Asset Protection Scheme (APS), with the objective of maintaining financial stability and protecting taxpayers’ interests by helping participating banks manage their exposure to high-risk assets.

The Royal Bank of Scotland (RBS) signed an ‘Accession Agreement’ to the APS dated 26 November 2009. This Agreement has previously not been published as it contained personal and commercially sensitive information. The Agreement is currently being reviewed with the intention of publication following redaction of any information that remains personal and commercially sensitive.

The APA’s Framework Document is currently available in unredacted form at: https://webarchive.nationalarchives.gov.uk/20130129110533/http://www.hm-treasury.gov.uk/apa.htm

The ‘Asset Management Framework and Conflicts Management Policy, and related Modifications to the Accession Agreement’ is also available, with the exception of a number of redactions of commercially sensitive information, at: https://webarchive.nationalarchives.gov.uk/20130129110533/http://www.hm-treasury.gov.uk/apa.htm

 


Martin Whitfield MP – 20 February 2019 (224088)

Treasury

To ask the Chancellor of the Exchequer, if he will make public in unredacted form the 9 November 2011 document entitled Approval of the Asset Management Framework and Conflicts Management Policy, and related Modifications to the Accession Agreement.

Answered by: John Glen MP

The Asset Protection Agency (APA) was set up in 2009 to manage the Asset Protection Scheme (APS), with the objective of maintaining financial stability and protecting taxpayers’ interests by helping participating banks manage their exposure to high-risk assets.

The Royal Bank of Scotland (RBS) signed an ‘Accession Agreement’ to the APS dated 26 November 2009. This Agreement has previously not been published as it contained personal and commercially sensitive information. The Agreement is currently being reviewed with the intention of publication following redaction of any information that remains personal and commercially sensitive.

The APA’s Framework Document is currently available in unredacted form at: https://webarchive.nationalarchives.gov.uk/20130129110533/http://www.hm-treasury.gov.uk/apa.htm

The ‘Asset Management Framework and Conflicts Management Policy, and related Modifications to the Accession Agreement’ is also available, with the exception of a number of redactions of commercially sensitive information, at: https://webarchive.nationalarchives.gov.uk/20130129110533/http://www.hm-treasury.gov.uk/apa.htm

 


Martin Whitfield MP – 20 February 2019 (224038)

Treasury

To ask the Chancellor of the Exchequer, pursuant to the Answer of 12 February 2019 to Question 218386, for what reasons he is not able to publish the full version of the Accession Agreement to the Asset Protection Agency.

Answered by: John Glen MP

The Asset Protection Agency (APA) was set up in 2009 to manage the Asset Protection Scheme (APS), with the objective of maintaining financial stability and protecting taxpayers’ interests by helping participating banks manage their exposure to high-risk assets.

The Royal Bank of Scotland (RBS) signed an ‘Accession Agreement’ to the APS dated 26 November 2009. This Agreement has previously not been published as it contained personal and commercially sensitive information. The Agreement is currently being reviewed with the intention of publication following redaction of any information that remains personal and commercially sensitive.

The APA’s Framework Document is currently available in unredacted form at: https://webarchive.nationalarchives.gov.uk/20130129110533/http://www.hm-treasury.gov.uk/apa.htm

The ‘Asset Management Framework and Conflicts Management Policy, and related Modifications to the Accession Agreement’ is also available, with the exception of a number of redactions of commercially sensitive information, at: https://webarchive.nationalarchives.gov.uk/20130129110533/http://www.hm-treasury.gov.uk/apa.htm

 


Martin Whitfield MP – 11 February 2019 (219540)

Treasury

To ask the Chancellor of the Exchequer, if he will (a) list the people who composed the Senior Oversight Committee for the Asset Protection Agency between 2009-2012 and (b) set out (i) the process by which and (ii) by whom those people were appointed.

Answered by: John Glen MP

The Asset Protection Agency (APA) was set up by the Government in 2009 to manage the Asset Protection Scheme (APS). The APA supported financial stability and the taxpayers’ interest by protecting financial institutions participating in the APS against exceptional credit losses on high-risk assets.

An APA Remuneration Committee advised the Chief Executive and Advisory Board on remuneration for APA staff, and advised HM Treasury on remuneration for the Chief Executive. Performance awards were made based on individual performance appraisals, which were undertaken in line with Civil Service appraisal and performance award policies. Further information on remuneration is publicly available in the APA Annual Report and Accounts here: https://webarchive.nationalarchives.gov.uk/20130129110533/http://www.hm-treasury.gov.uk/apa.htm.

The HMT Operations Committee approved the pay principles to be adopted in setting salary ranges for APA staff. Remuneration packages for senior APA staff were approved by the Cabinet Office.

The Senior Oversight Committee was established by RBS in compliance with the APS governance and oversight conditions. The Committee consisted of RBS senior management personnel and a non-executive director of RBS. The APA leadership team attended Committee meetings as non-voting observers.

 


Martin Whitfield MP – 11 February 2019 (219539)

Treasury

To ask the Chancellor of the Exchequer to state, what the proportion of (a) incentive and (b) bonus components was of remuneration for Asset Protection Scheme personnel and senior executives, evaluated against their performance targets between 2009 and 2012; and which Minister authorised those payments.

Answered by: John Glen MP

The Asset Protection Agency (APA) was set up by the Government in 2009 to manage the Asset Protection Scheme (APS). The APA supported financial stability and the taxpayers’ interest by protecting financial institutions participating in the APS against exceptional credit losses on high-risk assets.

An APA Remuneration Committee advised the Chief Executive and Advisory Board on remuneration for APA staff, and advised HM Treasury on remuneration for the Chief Executive. Performance awards were made based on individual performance appraisals, which were undertaken in line with Civil Service appraisal and performance award policies. Further information on remuneration is publicly available in the APA Annual Report and Accounts here: https://webarchive.nationalarchives.gov.uk/20130129110533/http://www.hm-treasury.gov.uk/apa.htm.

The HMT Operations Committee approved the pay principles to be adopted in setting salary ranges for APA staff. Remuneration packages for senior APA staff were approved by the Cabinet Office.

The Senior Oversight Committee was established by RBS in compliance with the APS governance and oversight conditions. The Committee consisted of RBS senior management personnel and a non-executive director of RBS. The APA leadership team attended Committee meetings as non-voting observers.

 


Martin Whitfield MP – 7 February 2019 (218386)

Treasury

To ask the Chancellor of the Exchequer, if he will publish the legal agreement dated 26 November 2009 between the Royal Bank of Scotland and the Asset Protection Agency.

Answered by: John Glen MP

The Asset Protection Agency (APA) was set up in 2009 to manage the Asset Protection Scheme (APS), with the objective of maintaining financial stability and protecting taxpayers’ interests by ensuring participating banks managed their exposure to high-risk assets responsibly.

The Royal Bank of Scotland (RBS) signed an ‘Accession Agreement’ to the APS dated 26 November 2009. This agreement remains in the private domain, but the broad parameters are publicly available here: https://otp.tools.investis.com/clients/uk/rbs1/rns1/regulatory-story.aspx?cid=365&newsid=235063. RBS’s participation in the APS was approved by Ministers in HM Treasury at the time.

 


Martin Whitfield MP – 7 February 2019 (218385)

Treasury

To ask the Chancellor of the Exchequer, who authorised the Commissioners to approve the Asset Protection Agency’s agreement with RBS on behalf of Her Majesty’s Government.

Answered by: John Glen MP

The Asset Protection Agency (APA) was set up in 2009 to manage the Asset Protection Scheme (APS), with the objective of maintaining financial stability and protecting taxpayers’ interests by ensuring participating banks managed their exposure to high-risk assets responsibly.

The Royal Bank of Scotland (RBS) signed an ‘Accession Agreement’ to the APS dated 26 November 2009. This agreement remains in the private domain, but the broad parameters are publicly available here: https://otp.tools.investis.com/clients/uk/rbs1/rns1/regulatory-story.aspx?cid=365&newsid=235063. RBS’s participation in the APS was approved by Ministers in HM Treasury at the time.

 


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.