FCA hits RBS with s166 review over its treatment of small firms

Royal Bank of Scotland (RBS) will have to undergo an independent skilled person review of its lending practices following allegations that it put some good and viable businesses into default so it could boost profits.

The review - also known as a section 166 after the part of the Financial Services and Markets Act (FSMA) to which it refers - will look into the banks treatment of customers in financial difficulty. The decision by the Financial Conduct Authority (FCA) to launch an independent probe follows reports published this week by Sir Andrew Large into lending practices at RBS and, separately, by Dr Lawrence Tomlinson into banks' treatment of customers having financial problems. Tomlinson's report is focused on the bank's Global Restructuring Group lending division, which manages 'risky' loans....