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January 9, 2011

FSA orders secret PwC report into RBS

The UK Financial Services Authority (FSA) commissioned a report costing more than £7.6million ($11.8 million) from PwC analysing the collapse of Royal Bank of Scotland (RBS), prior to the financial crisis.

But the FSA did not pay the fees in their entirety because it imposed a “special levy” on RBS of more than £4.7m for the extra regulation that the bank required after receiving a £45bn capital injection from the taxpayer, according to information provided to the Guardian newspaper.

PwC was commissioned to investigate a number of operations at RBS, including the events that led to the takeover of the Dutch bank ABN Amro as the start of the credit crunch in late 2007.

The FSA has also admitted it now does not have the report it can publish into the events that brought about the collapse of the Scottish bank, according to the Guardian.

PwC allegedly also scrutinised the “conduct, systems and controls” of the investment bank at RBS and the regulator defended the cost of the work conducted by PwC on the basis that a “complex” set of investigations were essential.

A spokesperson at PwC said the firm does not wish to discuss the contents of the report.

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