As the insolvency profession continues to be scrutinised, there are key points to take on board to avoid accusations of poor conduct, say Jim Oulton and Devi Shah, restructuring experts at Mayer Brown LLP
In his 2013 report Lawrence Tomlinson roundly criticised the alleged practices of RBS turnaround division, GRG, in relation to its handling of and conduct in respect of some SMEs which experienced financial distress. He made serious allegations that, artificially and/or inappropriately, some SMEs were distressed for the bank’s own benefit.
In a report compiled at about the same time, Sir Andrew Large did not identify these practices and in evidence given to parliament said so. He did not though dismiss the possibility they may have occurred. The allegations contained in the Tomlinson report are very serious and as a consequence RBS instigated its own review, with the Treasury Select Committee and the Financial Conduct Authority (FCA) now investigating the issues. These reports should become available later this year.
