Royal Bank of Scotland to be investigated by the FSA

The Financial Services Authority (FSA) has today confirmed that the complaints procedure currently in place at the Royal Bank of Scotland is to be investigated. This comes at a time when record complaints have been received by the Financial Ombudsman Service with Lloyds bank and Barclays bank very prominent in the figures. It will be interesting to see the scope of the investigation because at this point in time few details have been released into the public domain.

Whatever the investigation is centring upon, the Royal Bank of Scotland has confirmed it will comply to the letter as will other UK banks which are likely to be brought into the picture. It looks as though the FSA is determined to crack down upon the way in which customer complaints are dealt with at bank level, due in the main to a massive increase in the number of complaints reaching the Financial Ombudsman Service.

Slowly but surely the regulator is overhauling the entire UK banking system from head to toe in a process which will create an industry that is unrecognisable from that which entered the recession just two years ago. Where will this reorganisation of the financial sector end?