Tag: RBS

HMRC Tax Disputes Litigation Solicitors Office Barrister London

HMRC Advice for the tax treatment of Interest Rate Hedging Products (IRHP Review) redress payments

HMRC has issued tax advice leaflets for banks to hand to customers receiving redress from mis-sold Interest Rate Hedging Products (IRHP), urging correct tax return reporting. Affected banks must review sales since 2001 under FCA supervision, leading to customer compensation. Redress payments, consisting of basic redress, 8% compensatory interest, and consequential losses, are generally taxable income or subject to capital gains tax. Individuals should account for tax deducted from interest. HMRC recommends consulting an accountant for complex scenarios.

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A Royal Bad Bank: RBS Capital Resolution (RCR)

The Royal Bank of Scotland’s “Bad Bank” known as Capital Resolution (RCR) manages GRG, IRHP, and West Register portfolios involving distressed SMEs and mis-sold interest rate hedging products. RCR’s role is to isolate risky and non-performing assets, including businesses pushed into distress by GRG to facilitate asset acquisition at discounted rates. The unit has been criticised for poor treatment of SMEs, lack of transparency, and aggressive recovery tactics.

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RBS & Clifford Chance Report on GRG Branded ‘Whitewash’

RBS Clifford Chance report on swaps mis-selling is a “whitewash” attempt to downplay the bank’s wrongdoing and avoid accountability. The report is lacks independence and fails to address the full scale of RBS mis-selling. It has fueled calls for stronger action into bank misconduct.

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Royal Bank of Scotland’s GRG Whistleblower Reveals All in Channel 4 Investigation

A former RBS GRG Bank Manager at revealed they deliberately destroyed viable businesses to save the bank during the credit crisis. GRG charged excessive fees, intercepted payments, and stripped firms of assets, which were then sold through another RBS unit, West Register. The investigation featured a couple forced into bankruptcy by unjust fees, highlighting GRG’s hostile tactics.

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FCA to Review RBS GRG Allegations

The Financial Conduct Authority (FCA) announced a review into allegations against RBS’s Global Restructuring Group (GRG), following claims of unfair treatment of businesses during the credit crisis. The review focuses on whether GRG used aggressive tactics that led to unnecessary fees, the stripping of assets, and forced bankruptcies. This follows whistleblower revelations and reports highlighting GRG’s controversial practices.

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RBS Commissioned Report Criticises Treatment of SME’s in Global Restructuring Group (GRG)

A report by Sir Andrew Large criticises RBS’s Global Restructuring Group (GRG) for its treatment of SMEs in financial distress. The report highlights GRG’s operation as an internal profit centre with opaque decision-making and poor governance. Customers often face unsettling decisions without clear recourse, lacking funds or expertise to challenge the bank. Large calls for a forensic inquiry into GRG’s practices to address conflicts of interest and improve the treatment of distressed SMEs.

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Tomlinson Report Accuses RBS & Lloyds Bank of ‘Unscrupulous Practices’

The Tomlinson Report accuses RBS and Lloyds of unscrupulous practices through their turnaround divisions. It found the banks deliberately distressed viable businesses, charging excessive fees to force insolvency and acquire assets cheaply via property divisions like RBS West Register. The report describes these actions as systematic and institutional, damaging SMEs.

Britain’s New Banking Scandal

BBC Panorama exposes costly bank ‘swap’ scandal

BBC Panorama featured LEXLAW as we helped expose a major bank swap scandal, with widespread mis-selling of complex derivatives to SMEs. Despite a Financial Conduct Authority (FCA) redress scheme reviewing nearly 30,000 cases, only 32 businesses had received payouts at the time of the report.

The Court of Appeal judgment in Green & Rowley v Royal Bank of Scotland EWCA Civ 1197 concerns the sale of an interest rate swap (IRS) by RBS to the appellants, experienced businessmen. The court upheld the trial judge’s finding that RBS complied with Financial Services Authority Conduct of Business (COB) rules, including providing clear risk warnings. Key issues included whether RBS adequately disclosed potential break costs associated with early termination. The court concluded the swap was straightforward, and the appellants were capable of understanding or seeking clarification about the risks. The judgment highlights the necessity for clear, fair communication in complex financial product sales and confirms that sophisticated clients bear responsibility for understanding such transactions. Lexlaw offers expert advice on swaps mis-selling claims and related litigation.

Court of Appeal Judgment: Green & Rowley v The Royal Bank of Scotland

The Court of Appeal in Green & Rowley v RBS confirmed that a bank does not owe a common law duty to ensure that customers fully understand the risks of interest rate swaps beyond the regulatory requirements. The case involved claims of mis-selling, particularly around inadequate disclosures. The court upheld that the bank’s compliance with the Financial Services Authority’s Conduct of Business Rules was sufficient, and the customers were considered knowledgeable enough to understand the transaction.

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Interest Rate Swaps Mis-selling: FCA Publishes IRHP Review Statistics

The FCA’s update on the IRHP mis-selling review reveals severe delays, with only 10 final redress offers accepted out of over 30,000 cases after 14 months. RBS, with the largest review population, lags behind, still classifying many customers. Only 2% of sales have completed compliance assessment, with 93% found non-compliant.