RBS share price: Watchdog refuses to publish report on group’s turnaround division

The Financial Conduct Authority (FCA) has refused to publish the full report into the scandal at Royal Bank of Scotland Group’s (LON:RBS) controversial turnaround division, the BBC has reported. The news comes after the report leaked last month, suggesting that more than 90 percent of the businesses put into the lender’s Global Restructuring Group (GRG) division were understood to have suffered ‘inappropriate action’ against them by the bank.

RBS’ share price has inched marginally higher in London this morning, having added 0.13 percent to 251.40p as of 08:40 BST, outperforming the broader UK market, with the benchmark FTSE 100 index having slipped into the red and currently standing 0.23 percent lower at 7,278.37 points. The group’s shares have added just under 30 percent to their value over the past year, and are up by some 11 percent in the year-to-date.

The BBC reported today that the FCA had refused to release the full report into RBS’ GRG division, arguing that publishing it would risk revealing confidential information. The watchdog has promised instead to publish a summary of the report’s findings, verified by external lawyers.

The news comes after MPs recently demanded that the FCA publish the report, with Nicky Morgan, chairwoman of the Treasury select committee warning the watchdog’s chief executive Andrew Bailey that since the 361-page document was “in the hands of an unknown number of third parties”, it made little sense to maintain its refusal to publish the report.

RBS, bailed-out by the UK government during the financial crisis, has admitted wrongdoing over its handling of small business customers, while arguing that here was no evidence that it had pushed companies into bankruptcy. 

In analyst news, Societe Generale reiterated its ‘sell’ rating on RBS this week, without specifying a price target on the shares. According to MarketBeat, the company currently has a consensus ‘hold’ rating and an average price target of 254.71p. 

As of 09:08 BST, Friday, 15 September, Royal Bank of Scotland Group share price is 250.30p.