RBS to set aside £400m compensation for small businesses

Wrongdoing under bank's restructuring unit

The Royal Bank of Scotland will today announce its plans to put aside £400m to compensate the small businesses that were affected by wrongdoing in its restructuring business Global Restructuring Group (GRG).

Small businesses were moved under the control of GRG after the financial crisis but allegedly suffered from conflicts of interest and a lack of transparency on fees, according to the FT. The bank has also been accused of secretly trying to profit from the distress of its customers but is expected to reject these allegations. RBS has admitted GRG did get some things wrong and is set to offer a payout to small business owners that were affected by this. It will offer to repay a certain type of fee paid by some companies moved into the restructuring unit. Last month, the bank said in ...