Global Restructuring Group at RBS

Hello. My name is Rachel Coyle. I'm about 36 group. When we noticed that grow on part of the civil team, they're on G D property and commercial work on today's WEBINAR is on Global Restructuring Group at our yet Arizona geology. And the questions are who defected on What can you do? So there's something about this weapon. I will be quite brief just dealing with the key points about what geology is on and what you can dio meeting forward. You might be aware off the report recently about geology device is very much a hot topic at the moment. So I do hope that you will find this a really helpful weapon off today. Why don't we stopped with, firstly, looking at what happened? What is G r j and how did it come about? Why are we at that? We look at the second slide. You're still that it Ford timeline of key events. We're going to go through peaks of these in turn just to give you a picture what we're talking about. So in November 2013 I'll be asked. The Royal Bank of Scotland underwent an independent skilled person review off its lending practices on this was worrying allegations that Frank potentially put down Gordon viable businesses an attempt to boost its profits. January 2000 and 14. There was report released by a. Lawrence Tomlinson. Laura's Thomason was an independent businessman. You under construction and health care grip worldwide Now is Alan T. Group at a time he was asked by Vince Cable to investigate the problems that s I need we're having with RPS Internation Teoh G R G Global Restructuring. Great. Ah, not the result of that. There were consultancies that were effectively set up attempts to try and produce reporting late into DRG on behalf Sof the financial car. Little clarity. Yeah, See, I So in Germany 2014 Thomason released A report on the report was rather interesting, to say the least, because it claims that RVs profited heavily from businesses that were placed in its unit, this geology unit, because they were struggling businesses and there were real life examples that were given on. It wasn't interesting the court, because it highlighted that RBS's revenue came from charging higher fields to those struggling businesses that were placed in this G. R G and as a result, the Bags property and Equity division West Register purchased the D buying that sets with the intention being Teoh generate Healthy Sea or the bank. Of course, the outcome back was that it was detrimental to the customers. So in April 2000 and 14 RVs responded by its northern time with a chance todo an independent review off report produced by Thomason in Johnny 2014. On it was hoped that in that independently you that it could be violated trust to how geology operates. And actually, how businesses untreated is This is all BS. It attempts to try on and highlight how actually it is not a relativity persons. So in July 2014 the child of the Treasury Select Committee criticized Are the ass well being? And I quote willfully up juice. I'm delivering with Mary to view tone not only because our BFF's with grilled at the time that those comments came to Light Boy, the challenge feel benefit timers was Andrew Tyrie Electra. Apology was indeed sent by the relevant chief executive at RPS to the Treasury Select Committee. I apologize for misleading statements that have been made, you know, it was 2014. RBS shook down Georgina by October 2016 Sony two years the S c. I received bothering pools, they report I refer to buy that were commissioned, effected by its cable on the geology documents that suggested when they were unique. That was a desire to, uh, try and get cash. Well, I think the phrase uses Project Dash for cash. So if I November 2016 I'll be US, announced the Complaints Review scheme with those affected by G. R. J. So if you talk about geology in people's thinking, okay, it's about struggling businesses on the bank property Need struggle. Investors with high feed? What did actually drd achievable or do you always it? What was it meant to dio when it didn't start? So I returned to slice three. But there's an explanation of what geology is what ideology is a global restricting, great off up. Yes, so it's like a turnaround division on many business banking. Customers of RBS and that West were formed. They were either performing or they were in need of some kind of direction on DSO. They were then transferred to the global Restructuring Group G R gene, but In reality, geology was used to secure a zoo, much a return for the bank as possible, regardless of how the business was booming. So some of the sort of the case studies that produces part of reports and Janet south of 14 and indeed later on in the final report. But demonstrators that there were aggressive restructuring. There was a lack of your parents say about these were on what the theater to be used for, what the work that was being done by RBS two to assist the struggling businesses. And also at the time there were the equity swaps but introduced Well, then PPF phase on. This is just some of the ways in which businesses with that affected by G all day, though I referred that to actually swaps what I mean by a lot of debt for equity swaps that they are no PPF is so interestingly, Jogi after the credit crunch, waas probably inevitable that there would perhaps even more so many customers that would be transferred into this global restructuring group just to give you an example. All right, £65 billion with valuable burns were controlled by this geology unit and £3 billion with assets and equity was acquired from question. Let's just gives you an idea of the soldier Now. I repent brought to PPF I and also referred to West Register. What was going to explain just briefly what those terms are so West Register is the division within the bank that which was responsible for managing assets that they bought within the GOP within the unit a missing created property. And it also acquitted operative steaks and so on. Because of all the claims that were made, this West register was wound up. Now PPR phase is a property participation fee agreement. These Aaron prized boil Bs along the banks, secure a large participation in value off costumers asset. So essentially they could almost manage it themselves. They were determine what he's done with essentially out which goes to the whole point and purpose, all restructuring. And in fact, we trying Teoh make the best use out off course mid asset seemingly that supposedly for the coast and then one of the consequences that is, that this is said that also be offered a name on optionality complex fee structure, just by way of example interest right 100 times was it? I'll hitch peas. There are different types, and the guy that's really rather more for a different type of weapon off. But our HPC interest rate hedging products you have Captain Connors swaps, currencies, currency swaps, the different names, Roller Coast to swap. There's just a whole host of name. But that's just one example sticks in my mind my experience of thesis that inflicted cripple small businesses. We went to solve them to result. In fact, um, I used to do this kind of whip myself on behalf of us. That means to try and actually race I cases part of USDA review time on Go doubt with internally through that, through that complaints process will go to the courts, although you may or may not know some cases deputy to call, um on. Duh. Of course. Obvious was not the only bank at the time I was dealing with interest rate hedging products, but this was one of those products that were suggests were quite it was suggested at the time of passage. Er g meetings on, therefore, what happened with interest rate hedges. Watts almost coincided with geology swaps and in strategic product have been around for some time, so don't confuse the two. But they dio that you complement each other very well because they were really utilized up at same time. That should a business ball into judging, you know? So the question that some people asking Well, how do I know if I waas meant being geology? I mean, is that like a way of determining how somebody should or shouldn't go into the g r j on any myself? Decision must. What about happy mistreated? And I feel like I'm likely and was treated returned to slight for this is what the questions I'll ask, How is geology decided? But how about no fire being mistreated? So Georgie s actually, that was no test. And as to which businesses in which situations meant that a customer had to be transferred with all business its assets to the geology unit, uh, it was intended to help struggling businesses. Andi, Even despite that, it hasn'T. Bean. It is known that some successful businesses did end up being put into the genealogy unit. So it was a primary just to deal with struggling businesses. You know, that was what is meant before because at the end of the day, arguably the bank took his opportunity to secure was much capital for themselves. Impossible really starts the way some people would like to see it, and as a result, people were mistreated. And there are common indications suggest why one it has been mistreated. So not knowing, quite possibly being managed by geology. The PPF phase being insisted upon by the bank Any involvement with with West Register banking system that used external counsel firm about, uh, doing today an independent business review any payment of management fees on an aggressive restructuring, the kind of indications that probably will mistreated or your client mysteries. So that's one of the things that you might want to think about it. If you're not sure, how has this happened to you to down a straight More what kind off factors are like a tutu feature, because then those factors are used as part of it. But many tricks, of course, of action. If you to die, I'm doing something informally rather than go through the courts or if you go through the court process. But the Dave what legal basis of helpfully sat out in decide for. So you've got breach of contractual terms specific to the case. Breach of implied duty. Good day bridge If I'd issue duties by directors unlawful means conspiracy, where two or more parts agree to use or normal means to injure the business customer. Misrepresentation. A negligent Those are the legal basis that you will need. Teoh. Consider what your client to yourself have have anything other factors, such as progressive destruction and so on. Do they feature in your situation? If they do, then that it's likely to form the legal basis refer to slide for So what about how do you go about making a plane? So it is difficult how much you can claim? Um, best of the best thing I will cite. We didn't get to that how you could make a complaint, uh, different ways in which this can be done. So the first is RBS it Complaints scheme on board. This is one of the one of the routes that have been considered by a lot of attorney previously, but if for my spreads, at least, it's the interest rate hedging product reviews, anything to go by does the nationally means that you get best outcome mean often it's just about trying Teoh capital and deal with that and move on on to the next person on to the next business. Uh, that said, they're happy to very successful cases off the back of your head up. Your view is more a question off. Do you really want to wait for that time? Teoh duty passed because it can take some type of needs cases to go through the works, and it is likely that that would be the case. Well, for any are geology complaints as well. It's not straightforward, it is complicated, and they are back specific issues. It's not like this. Each and every single case there's like a certain matrix that you can your cat to determine. If there is a reason to go good playing, I have the basis for the claim. Every single cases is different. It's actually the taxes may be the same, but how attacks have been executed in the impact is what need teething with crucial fax. The types of things that would be considered a soft complaint scheme at RBS are whether or not you should have been in geology and birthplace. Were you factor struggling business clients. Any thieves are being charged any interest, penalties, anything of that nature. Although I appropriates where they appropriate and the effect of those views has it strained your client or your business such an extent that you have missed out opportunity that you might otherwise invested in? That's a consequential loss, but also I did ineffectual liquidity. In your credit, we weren't able to. It's a pet chisel or on a agreement he already had. We're in the process of making or were you just too constrained by these fees? But in order to achieve that, sometimes you might find it wise to get a complaints handler Teoh, formulate your complaint for you. In that way, it is quite tricky. It's probably not what to do in the way the raw specialists out there. You are able to assist in that respect, and they'll be able to try and unite legally a legalistic type package off. How to deal your your complaint and put that across. Two R B. I's are many organizations out there Nice. I strongly suggest that you are thinking about making use of Crane. You consort those kinds off cos first you could help you. The next thing is that some people ask, Can I still claim, though, where my Courtney, it's going into administration or is now dissolved? Because what do you ask that question and certainly a lot of cult needs and attorneys? They have been affected. Uh, today somewhere that has actually happened. Andi. Suddenly, it's not straightforward to actually go through any sort of geology type plane, Uh, when you're either dissolved or in administration. So if it is that you your clients, is dissolved, it doesn't stop making kind. Just need to be complicated. So it might be that you could make a claim if you qualify as an interested party, such as a shareholder administrator. Liquidator made a credit to, perhaps more often than not very totally shareholders or former directors. So those are the types of people. They will be in a position. Teoh. Still, how that locus done die? I, they still have standing to bring the climbing. Another company IHS dissolved or in administration. So how much can you actually clean caused? You go to a geologic process. As I said before, it's quite difficult to determine how what you claim. It's difficult to determine what kind of redress is it's. It might be a case of trying Teoh. Look all the Diamant losses, and I'm trying to work how your consequential offices cause my trusted coming quite the courts determined in particular, because that's all about what was really we'll see of all the loss, whether it's remote, foreseeable isn't connected to actual happily Giorgio, that other things going on a bit of time that you could isolate from what was happening from the bag perspective imagines with that business. So I often suggest in that situation that you do appoint a forensic accountant you can be able to quantify that complex lost its, which is loss of profit opportunity. What I will say is that I hate to peer review is anything to go by. Consequential losses are notoriously difficult to claim on most cases. Not all. But most cases don't get any consequential losses. No, even if if they even if they ask for something, get a fraction of what they claimed. Some have gone, it'll gets normal. Vast majority haven't been successful in getting any of it getting a lot just just very little, if anything, in the world consequential losses because it is difficult to to try and track. And it's a beautiful So you aspect because, you know, talking about business. But how about trading or what you did whatever it is they are doing and then looking up what the economy was like time on whether that in itself was foreseeable with with not the bank is expected to know how that particular industry water what's not doing, for example. But there's a whole factual matrix there that renting accounted all the great tradition to deal with that's not to scare you is it's just a highlight that this is again something that I wouldn't suggest doing on my own. You want to make a claim of those kind of off losses and not merely just direct lots of, such as things you have to pay penalties. You have to pay interest well of blood. What was what was normally like it time. So just just something really to bear that in mind. So something that I get asked a lot, and I certainly go ask it when it is interest rate hedging products case reviews that that I'm dead time he has a guy is what was damaged Martin. I should with That's a common question, and the answer is, we don't know because any sort of complaint, The East out with separately. It's like a separate process. So seven years the complaints review on the SDA has actually surged, that banks are not penalized distances, more individuals for having submits to complaint to the complaints review scheme or, indeed, internally with bank. So what? We can't promise at his lawyers that the bank won't treat you any differently. There certainly shouldn't treatment any differently, and they should maintain whatever existing arrangements are with you at the moment that you don't ever change that. It obviously it's it's to do with what's happening moment. You're this little company rather than because of the thought that you grace a complaint so I would not be worried about. It's more about making sure that there is fairness across the board on. The Banks were well aware that being the case, the very fact that they did turn off speak to Treasure Committee and actually said on glory, it's pretty indicative, so that that is very helpful in D. T. Know that And again, like I said before, the currencies can take some time to use a complaint skiing itself because each case is dealt with a case by case basis in the written narrow certain majors and cannot be locked up each case. It's very, very different, so I d be prepared that if you go through that process, it can take some time. But it might be worth if you are that made an offer by the bank. You don't need to consider what you think. It's reason we're not. Maybe you can contract with alternative so again you may want to take on a vital that what street will not. But if you're just talking about getting at least something rather than nothing, no matter what that bigger is done, it might be just want to accept it after too much about cigarettes. If you are offered anything, so that's an option. Another option is that people might consider going to the course either directly or in addition to complaints game. If they're not happy with complaints game for they are fearful that they might be outside of limitation. Limitation is six years, um, from the day talk, when you when there's been a breach on. Also, it's three years if you're relying on negligence, so expected to screech contract three years if it's negligence that relying on. But often with these cases, you would be relying on both. You'd be right on both values and then alternative in any sort of litigation. Private case, a problem. Any breach of contract. It was like educated, big, big negligence, but further or alternatives that they're not. It's no either one or the other. So you made a lot of boats because they are many 100 hand that when it costs these types of cases. So that's something to bury. Mind constitute limitation. But yet the general is six years from the date the cause of action occurred. You talk about contract with Reputation is potentially fraud. Or if you're talking about native damage, negligence contacts, then it's within three years off the going to knowledge. So drive out in mind if you're thinking about whether or not to litigate your quiet time, so just dealing, then briefly with what's happening at the moment. A little bit more to date. In February this year, the Treasury Committee did prohibition report in that they summarised the findings of the FCK back in November 2016 and it does provide quite a lot of detail in relation to their findings. Of course, this report doesn't make a difference to your right to complain or how your complaint is investigated, but it might help you understand whether you want to go ahead with making complaints. That's part of RBS great scheme, or indeed, through the courts. So in summary, think about whether or not you or your client is is actually in. The judge unit is pointing one point number two is considered. What factors would suggest that you have Bean was treated So, for example, dunes with West Register. The high fears Grasset restructuring. Where you, Bean told Teoh, consider a particular type of loan. Other, like the Pff a ones or even our hate peas at the time. Andi, what's the impact? The street things. A marionette cominat was treated badly. You're treated badly. What being a consequence when they what losses of I suffered as a result, direct and consequential. Finally, if I decide to litigate rather than go through the scheme or not happy with the offer being made through the complaints game, um, I in time. If you are potentially going to be out of time whilst your case is still going through the complaints about reviews game, then you might want to issue proceedings. Protect to protecting yourself with very mind the court. These are quite high in that generation to that criminal waters. Your claim in the way of damages and again damage is hard to particular eyes. I couldn't stretching or power advantageous. It is to get a forensic accountant on board to help you deserve what the dark glasses are. But also the consequential losses on the complaint Tumbler is likely. If you want to complaint on it to help you actually put forward a strong case, they're likely to know the right kind of frantic account of the situation. I do have that helped in some way. Geology is particularly restrict. Boy, did you can put together, but you've got it. But general ideas to whether or not you or your client how they had a potential case on what that might involve. You take up Lord in any way. Thank you.