Statement on Back Bench Business Debate Application - 5 March 2018

The APPG on Fair Business Banking and Finance have applied for a back bench business debate. The disclosure of the Section 166 report into RBS GRG has brought to a head many of the issues the APPG has been tackling for years. Since the financial crash MPs have heard reports from their constituents that the mistreatment highlighted in the s166 report was repeated across many banks and building societies. In the face of banks’ liquidity requirements at the time, the apparent strategy of distressing businesses, property down-valuations, forced administrations and selling assets was not isolated to RBS. The potential conflicts of interests caused by relationships between lenders and associated industries is also in question.

This is another valuable opportunity for MPs to raise:
– concerns that constituents have with the business banking industry as a whole
– the role of associated industries such as insolvency practitioners, surveyors, law firms and LPA receivers
– the shortcomings of existing dispute resolution mechanisms
– the failures of previous redress schemes
– the impact of these failure on businesses, jobs, lives and the economy

The current landscape is such that businesses cannot obtain suitable redress. This must be rectified so that industry and business can move forward.

The motion we are proposing is as follows:

Redress for victims of banking misconduct and the role of the FCA

That this House welcomes the public disclosure of the Section 166 report into the conduct of GRG; is concerned about the fundamental difference of tone and emphasis between the summary produced by the FCA and the full report; believes this calls into question the strength and independence of the regulator; notes that the concerns raised in the debate on 18th January with regard to the financial services sector, which is not limited to RBS, and its advisors not only persist, but are amplified by the conclusions in the report; calls on the Treasury to instruct the FCA to move on to phase 2 of the investigation into the root causes of RBS GRG by a body independent to the FCA; and once again calls for a full independent inquiry into the full financial services sector and the associated industries that have allowed misconduct to thrive, and the establishment of an independent mechanism for redress for businesses.

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