City watchdog hands full report on RBS turnaround unit to MPs

The Financial Conduct Authority (FCA) has handed MPs (BSE: MPSLTD.BO - news) the full version of its report into the treatment of customers placed in RBS (LSE: RBS.L - news) ' controversial Global Restructuring Group (GRG).

The City watchdog had been given a deadline of Friday by the Treasury Select Committee to either publish the document or hand it over - having previously refused to place it in the public domain on legal grounds.

Only a summary has been officially released so far as the FCA argued it had not obtained necessary consents to release the full version.

It maintained that stance on Friday, insisting its hands were tied.

The regulator also expressed regret that a leak had enabled the full report to be seen by some MPs and sections of the media last year.

The document delves into allegations that RBS - still more than 70% taxpayer owned - mistreated many of the 12,000 small business customers placed in the GRG between 2007 and 2012.

It included claims by some firms they were deliberately forced to fail to benefit the bank.

The redacted version of the FCA report said 92% of potentially viable businesses that went into GRG had "experienced some inappropriate actions".

RBS has admitted GRG did not do a good job as communication with companies - especially over fees - was poor, but it has insisted the bank did not deliberately push firms over the edge to pick up their assets on the cheap.

Andrew Bailey, the chief executive of the FCA, said in his letter to Treasury Committee chair Nicky Morgan: "I do want to make it clear that it is not our intention to frustrate or impede the work of the committee, quite the reverse in fact, and with that in mind we are providing the report as required."

While he has previously pleaded the full report should not be placed in the pubic domain - at least not yet - the committee is to meet on Tuesday to decide its next move.

Mrs Morgan said: "At that meeting, I will be asking members to agree to publish the final, unredacted report under parliamentary privilege as soon as possible."