Parliamentarians call for a public inquiry into the mistreatment of banks by small business customers

Letter: FCA Executive Director Andrew Bailey

Parliamentarians call for a public inquiry into the mistreatment of banks by small business customers

  • The call is made in a letter from the APPG to FCA boss Andrew Bailey
  • Recently, the FCA said it could not take any action on the looting of small businesses by the global restructuring group of RBS.

Alex Hawkes for the mail on Sunday

An influential group of deputies demands a full public investigation into the mistreatment of banks by small business customers.

The Parliamentary Group of All Parties on Fair Business Banking wants an investigation into "the complex and often incestuous relationships between financial institutions, their many advisors and related professions, and the complex regulatory framework that is supposed to maintain the highest standards."

The call is made in a letter from the APPG to Andrew Bailey, executive director of the city's regulator, Financial Conduct Authority.

Letter: FCA Executive Director Andrew Bailey

Letter: FCA Executive Director Andrew Bailey

The FCA said recently that it could not take any action on the looting of small businesses by the global restructuring group of RBS. He said deficiencies in RBS were outside of his regulatory mandate, and that he found no evidence of dishonesty or lack of integrity among senior management.

APPG President Kevin Hollinrake said that this position had left the APPG "disappointed and extremely concerned".

Baroness Kramer of Lib Dem, who was in the parliamentary committee on banking standards, endorsed the APPG, saying that research is needed to "restore confidence".

A review by the Promontory advisory group found no evidence that RBS deliberately pushed small businesses to the wall for profit, but detailed cases in which bankers had extracted huge and often arbitrary fees.

The APPG also said that it would like any public investigation to cover scandals about the treatment that other banks give to small businesses.

The Mail on Sunday is campaigning for a court or an extended ombudsman service to resolve disputes between banks and small businesses.

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