FSA launches three separate investigations into RBS
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The FSA intends to investigate Royal Bank of Scotland on three different issues, the bank revealed yesterday in its annual financial report.
The city regulator will investigate the bank, which reported losses of £3.6bn for 2009, for its takeover of Dutch bank ABN AMRO in 2007 and fund raising in 2008, compliance with money laundering regulation and its handling of customer complaints.
The RBS report, concerning the takeover of ABN AMRO, says: “In April 2009 the FSA notified RBS Group that it was commencing a supervisory review of the acquisition of ABN AMRO in 2007 and the 2008 capital raisings and an investigation into conduct, systems and controls within the Global Banking & Markets division of the Group. RBS Group and its subsidiaries are cooperating fully with this review and investigation.”
The results also state that the FSA informed RBS in November 2009 that it was commencing an investigation “relating to compliance with UK money laundering regulations during the period from December 2007 to December 2008”.
Finally, in January this year, the FSA told RBS that it intended to investigate the way RBS handled complaints. However, it noted that the scope of the investigation is not yet clear.
Meanwhile, RBS also stated that the Office of Fair Trading has been investigating the bank for a breach of conduct relating to the provision of loan products to professional service firms.
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Readers' comments (2)
Incompetent Regulators Award Team | 27 Feb 2010 6:18 pm
After the horse has bolted again....................
FSA looking to justify it's useless existance
No wooden spoon big enough for this award!
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Julian Stevens | 1 Mar 2010 11:35 am
It's a start, vastly overdue of course, but a start nonetheless. What's missing from the agenda though is any mention of RBS' selling practices when it comes to financial products, though maybe that'll be covered under complaints handling.
I shall await the outcome with interest.
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