The Treasury has ordered a review of FSA rules after the regulator said it was unable to publish a report into the collapse of Royal Bank of Scotland, according to The Sunday Telegraph.
The regulator is under mounting pressure to publish its report following suggestions former chief executive Sir Fred Goodwin had no objection to the content being made public.
The Sunday Telegraph quotes “Treasury sources” as being frustrated over the lack of transparency over the report. The source was unclear as to whether any rule changes could be retrospective to allow publication of the RBS report or a redacted version.
Under the Financial Services and Markets Act 2000, it is illegal to make confidential information public. The paper suggests there are exemptions which allow for the disclosure of information “for the purpose of facilitating the carrying out of a public function” or when “permitted by regulations made by the Treasury under this section”. It also indicates that the express consent of RBS is likely to be needed.
Last Thursday, the FSA concluded the bank’s failure was down to “bad decisions” rather than a lack of integrity. The regulator said it did not identify instances of fraud or dishonest activity by RBS senior individuals or a failure of governance on the part of the board.tom