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RBS ‘challenged size of swaps redress’

A whistleblower has claimed Royal Bank of Scotland tried to minimise the amount of compensation paid out for missold interest rate swaps.

The Times reports that KPMG, which oversaw the redress programme over interest rate swaps, was “browbeaten” into accepting smaller settlements to small businesses.

A former KPMG subcontractor, who asked not to be named, told the newspaper swaps worth more than £750,000 were “almost always challenged” by the bank. The source said RBS pushed for firms to given a new deal rather than their money back.

They said: “The bank did not want to pay out cash on these cases, nor meet high break costs if it was in any way avoidable. Considerable pressure was put on the review team by the bank to offer … an alternative product or, in some cases, to argue that it was a compliant sale with no redress.

“The higher the cost to the bank, the more the bank would argue with the reviewers and in some cases also with the skilled person seeking to persuade them to change their minds.”

A spokesman for RBS told The Times: “RBS refutes the allegations that have been made. We have worked in line with the FCA principles and methodology throughout the review to ensure our customers receive fair and reasonable redress. The process is independently reviewed by KPMG who have full access to the evidence available.”

A spokeswoman for KPMG said: “We strongly refute any suggestion that our work as independent reviewer on behalf of the FCA has been in any way influenced by RBS … Staff worked in dedicated premises with secure access, limited to KPMG’s project staff only. Contact between the KPMG and the bank staff on any areas of disagreement was through formal meetings involving senior forensic and regulatory investigation specialists at KPMG.”

The FCA says the allegation is not supported by the facts.

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  1. The FCA says the allegation is not supported by the facts.

    Interesting. So when presented with written statements of wrongdoing, insolvency, fraudulent accounting, theft, misappropriation of client money by a regulated firm and presented with proof of same by George Patellis – the Tiuta Whistle-blower who has waived his right to confidentiality – the FCA actually does nothing other than try to say an investment was mis-sold, claim from your adviser.

    Even when allegations are supported by the facts it is reassuring to know the FCA still do nothing other than mis-brief MP’s, Ministers and lie about their involvement with the Police.

    If you wish to regulate and monitor an industry by the standards it maintains, it would be very useful for you to have some yourself.

    Why aren’t these people properly accountable?

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