State-backed Royal Bank of Scotland was today fined £14.5 million after the City regulator found “serious failings” in its advice to mortgage customers.
The Financial Conduct Authority (FCA) said only two of the 164 sales it reviewed between June 2011 and March 2013 were considered to meet the standard required overall in a sales process.
It found RBS and its retail arm NatWest failed to consider the full extent of a customer’s budget when making a recommendation, while staff did not advise customers what mortgage term was appropriate for them.
The regulator said there was no evidence that there was widespread detriment to customers, although RBS and NatWest will contact 30,000 consumers so they can raise any concerns they have about the advice they received.
RBS said that in response to the regulator’s findings at the end of 2012, it overhauled its mortgage sales process and re-trained all mortgage advisers.