Royal Bank of Scotland is paying out bonuses worth £17m to its controversial Global Restructuring Group division, despite the business still being under investigation by the FCA.
The Sunday Times reports it has seen documents which show RBS has approved bonuses for GRG based on 2013 performance, despite claims it deliberately forced small businesses into default to boost its own profits.
More than 1,000 small business owners have lodged complaints about the GRG business and the bank is reportedly set to face several law suits over the claims.
While a Clifford Chance report commissioned by RBS declared no wrongdoing on the bank’s part, the FCA’s investigation is still ongoing.
The regulator first ordered RBS to conduct a past business review in November.
Last week Treasury select committee chairman Andrew Tyrie slammed RBS for giving “willfully obtuse” evidence earlier in the year, after the bank’s deputy group chief executive Chris Sullivan appeared to make a U-turn in describing the GRG division as a “profit centre”.
RBS announced a 93 per cent rise in profit from £1.34bn to £2.65bn in its interim results statement last week.