LONDON, July 31 (Reuters) - Britain’s markets watchdog said it has closed its enforcement investigation into alleged mistreatment by Royal Bank of Scotland of small business customers, and no action will be taken.
Small businesses and lawmakers have criticised the Financial Conduct Authority (FCA) for not bringing its investigation into the bank’s Global Restructuring Group (GRG) to a speedier conclusion.
FCA Chief Executive Andrew Bailey said GRG was largely unregulated and the watchdog’s powers to take action in such circumstances are very limited.
“Taking action was therefore always going to be difficult and challenging but after carefully considering all the evidence we have concluded that our powers to discipline for misconduct do not apply and that an action in relation to senior management for lack of fitness and propriety would not have reasonable prospects of success,” Bailey said in a statement.
Reporting by Huw Jones, editing by Emma Rumney