A businessman who formed an action group against Royal Bank of Scotland Group PLC (LON:RBS) over its treatment of small business customers is seeking a judicial review into the Financial Conduct Authority’s handling of the matter.
Former Torex Retail boss Neil Mitchell has filed an application for a review into the financial watchdog’s decision not to sanction any executives of the bank’s Global Restructuring Group (GRG), according to court documents seen by Reuters.
READ: RBS boss 'appalled' by memo urging GRG staff to let customers 'hang themselves'
The FCA said in July that it would not take any disciplinary action against RBS and its senior managers over the activities of GRG, the turnaround unit that dealt with struggling businesses.
The regulator said it lacked the powers to discipline RBS for misconduct, despite the “widespread inappropriate treatment” of small businesses by GRG.
In February, the FCA published its full unredacted report into GRG’s treatment of small firms. It found GRG’s activities had resulted in material financial distress for small business customers.
Mitchell, who set up the action group for affected businesses and individuals in 2014, is now seeking a review into the FCA’s decision not to discipline any bankers.
“We will not comment on the application seeking to review this decision while it is pending,” a spokesman for the FCA told Reuters.
RBS, which has set up a £400mln compensation scheme for victims, declined to comment.
Last year, a high court judge dismissed Mitchell’s lawsuit against RBS for its handling of Torex Retail. He has said he would appeal the ruling.