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RBS still under FCA review over unsuitable advice

Royal Bank of Scotland is still under FCA review over historic pensions and investment advice, it has revealed in financial results this morning.

Predecessor regulator the FSA investigated a number of banks and building societies over the investment advice they offered to retail clients, producing a report on failings in 2013.

RBS, along with other banks, was ordered to review some of its past business and liaise with customers that got advice on particular products over a ten-month period the previous year, with redress being paid to a number of those.

However, the bank has revealed its troubles with the regulator are not yet over.

The FCA, which took over from the FSA in 2013, agreed with RBS to conduct “a wider review/remediation exercise relating to certain investment, insurance and pension sales” dating as far back as 2011, half-year results for the bank published today note.

The bank says that while that work was meant to finish in the first quarter of this year, the deadline has now been extended as it likely to run through to the third quarter as more products are being included in the review.

Another phase of work around sales in 2010 started four months ago, with a plan to complete this part by the end of 2018.

Bank advice gets personal

RBS says that, in total, it had budgeted £204m to date in relation to investment advice issues. Just over half, £116m, had been spent up to the end of June this year.

The bank says it has already paid redress over sales of a particular structured product after FCA intervention, where the regulator raised concerns about the inappropriateness of the target market and disclose failings to customers.

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. Charles Campbell 3rd August 2018 at 9:18 am

    Time to give RBS a break and move on to the small US brokerage outfits prospecting for clients in the U.K. and not registered with FCA.

    • So stop the work on a major UK firm with a proven record of unsuitable advice, affecting tens of thousands of UK customers, to investigate US brokers who are unregulated?!?!

  2. Has the FCA finally yielded to the TSC’s demand for a full and un-redacted copy of its report into the near collapse of RBS?

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