Nikki Turner, director of SME Alliance, says: “The Financial Conduct Authority has found that if the current regulatory regime was in place when RBS was sending thousands of small businesses to the wall, then they would have had the ‘jurisdiction’ to take action against the senior management of the bank. Based on the report’s findings we would point out that the FCA can still make a decision under its Principle for Business as to whether the senior management were fit and proper persons for the jobs. We therefore call for all of those who were in charge of RBS at the time – notably current RBS CEO Ross McEwan and his predecessor Stephen Hester – to immediately resign from their present roles and not be allowed to hold senior positions in financial services.
 
“While the regulatory regime has been tightened up through the introduction of the Senior Managers & Certification Regime, the protection afforded to small and medium sized businesses, which are the bedrock of the UK economy, in their dealings with banks is still woefully inadequate and we call on the Government to urgently review whether they want entrepreneurs to feel that they can safely borrow to grow their companies.
 
“Yet again, we are deeply disappointed that the regulator, having found ‘that some aspects of customers’ inappropriate treatment were systematic’, and that ‘Some customers lost everything’, seems to have concluded none of RBS, its staff or its senior management could or should be held accountable in any way. It begs the question of why the FCA started an investigation or produced a report at all when the only real beneficiaries will have been the authors?"

Dear Members,

The Dobbs Review Team are doing a FINAL CALL for Witnesses.
They have posted a message on their website...
dobbsreview.com/Home/Message
Their deadline is 18th April 2019.

Please watch the video and get in contact with them to share your experiences / evidence.

Best,
Nick Mele.

SME Alliance, which supports business people in their disputes with banks, has accepted an invitation to join the steering group being established to deliver the Dispute Resolution Scheme (DRS), a finance industry funded interim voluntary scheme which will offer support to SMEs.

The aim of the DRS is to provide a mechanism to compensate the more than 60,000 legacy cases SMEs have with banks and financial organisations. The DRS steering group is being chaired by Lewis Shand Smith, former Chief Ombudsman and Chief Executive of Ombudsman Services, who has invited both SME Alliance and the All-Party Parliamentary Group on Fair Business Banking to join the committee. The DRS is being funded by seven leading banks. 

While SME Alliance, and many of its members, would prefer a Government run dispute resolution process, it has decided to support the DRS, if it is properly set up and structured. 

Nikki Turner, director of SME Alliance said: “This is an opportunity to represent victims and create a mechanism that will resolve the tens of thousands of legacy cases. Many SME owners are unable to fight the banks through the courts for reasons including time barring and the expense of litigation, so this represents a real opportunity for them to secure a semblance of justice. We look forward to working with Lewis Shand-Smith, APPG co-chair Kevin Hollinrake MP and all key stakeholders to make this very important initiative work.” 

Nick Gould, chairman of SME Alliance, said: “'I'm pleased that the huge amount of effort by so many people connected with SME Alliance is continuing to pay off. Being part of such a key Committee will give us further influence in doing what we originally set out to do - obtain proper compensation for members and others whose lives and businesses were destroyed by certain corrupt bankers and certain of their corrupt advisors.” 

Kevin Hollinrake MP, chair of the APPG, said: “We are delighted that the voices and experiences of the victims will now be included in the design of both the historic and future schemes. I have no doubts that the insights SME Alliance are able to offer will lead to the creation of a better, more effective scheme that has the confidence of those who have suffered at the hands of our banks.” 

Ian Lightbody of the CYBG Remediation Support Group, added: “The newly formed CYBG Remediation Support Group, incorporating NAB Customer Support Group members, supports the SME Alliance’s participation with the Dispute Resolution Scheme. We stand with the APPG for Fair Business Banking’s position in that we will participate in the process if the ground rules are independent and fair. We are meeting with the committee chairman this week to discuss this.” 
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SME Alliance was formed in September 2014 to support SMEs “battling against fraud, corruption and misconduct in the financial sector” and to lobby for the fair treatment of businesses by their banks and advisors. 

​SME Alliance, which supports business people in their disputes with banks, today called for the UK Government to come clean over accusations that it had day-to-day involvement and "strategic" control over RBS’s Global Restructuring Group (GRG) through the Asset Protection Agency. If it is proven that it did exert control, then the UK Government should compensate businesses ruined by the nefarious practices of the infamous GRG unit.
 
Said Nikki Turner, director SME Alliance, said: “SME Alliance was formed specifically because the abuse of SMEs by the financial sector was so blatantly obvious and so blatantly ignored by those who should have supported the sector. We realised we would have to fight hard collectively to redress the balance and get justice. We've spent years looking at the conduct of banks and their associates and only now are we beginning to see some light at the end of the tunnel.
 
“It is devastating therefore - although not entirely surprising - to think the root of our problems lay with the Treasury back in the days of the so called 'credit crunch' and continued after the election under Cameron. If these allegations are proven this will be yet another reason why those responsible for destroying so many SMEs must be held to account, and that includes the Government which should compensate victims of GRG.”
 
An internal report by the Financial Conduct Authority into RBS GRG which showed that thousands of businesses forced into the unit were adversely impacted by the actions of the bank. However, the FCA claimed that it could take no regulatory action against RBS executives.
 
SME Alliance was formed in September 2014 to support SMEs “battling against fraud, corruption and misconduct in the financial sector” and to lobby for the fair treatment of businesses by their banks and advisors.

SME Alliance, which supports business people in their disputes with banks, has accused HM Treasury (HMT) and the Financial Conduct Authority (FCA) of failing British business and caving into the big banks in their refusal to set up a fair, independent and transparent system for resolving disputes between SMEs and their lenders.

In their response to the Treasury Select Committee’s 24th Report on SME finance, both HMT and the FCA have refused to regulate SME lending, or set up the Tribunal system advocated by MPs, businesses and some banks. Instead they are allowing UK Finance, the banks’ own trade body, to set up an “independent” adjudication system. The Government and the regulator claim that there is not “a clear case for bringing SME lending into regulation, as there would be a number of direct and indirect costs” and also argue that “the financial services industry has changed significantly”.

Nikki Turner, director of SME Alliance, said: “The Government and the FCA are betraying British businesses, while acknowledging they are the backbone of this country, because they are unwilling to take on the big banks. Instead of putting in place regulation that would protect businesses and create a truly independent tribunal system to deal with disputes, they are allowing the big banks to run their own mechanism, which is on their terms, effectively letting the banks mark their own homework.

“This has created a farcical situation where SMEs become ‘too big to regulate’ because the banks are ‘too big to challenge’. Yet again business owners have been denied access to justice.

“The arguments used by FCA and HMT are flawed. They only need to look to Ireland to see a regulatory system that is working for SMEs without onerous extra costs. The idea that because the banks are not behaving as badly as they did a decade ago, it’s all OK, is like inviting Hannibal Lecter to dinner because he hasn’t killed anyone recently.” 

Two of the leading challenger banks – Metro and TSB – have joined calls by the Treasury Select Committee, the All-Party Parliamentary Group on Fair Business Banking and SME Alliance for an independent tribunal to rule on disputes between SMEs and their banks.

Members of SME Alliance are currently battling many of the major UK banks for compensation, with high profile cases against Lloyds Banking Group and RBS leading to claims for hundreds of millions of pounds of recompense for unethical, oppressive and illegal behaviour.
​
SME Alliance was formed in September 2014 to support SMEs “battling against fraud, corruption and misconduct in the financial sector” and to lobby for the fair treatment of businesses by their banks and advisors.

First and most importantly, thank you to everyone who has helped SME Alliance and its members in so many ways during what has been another tough year. Although a few members have managed settlements in a few cases, that has been the exception rather than the rule and let no one tell you those settlements were generous in any true sense of the word.


Generally, and I am not sure whether I'm still surprised about this or not, too many bankers and their advisors still seem to think claims for fair and reasonable compensation for lives and businesses destroyed between one and two decades ago, amounts to a war. They battle on ( as I've said before this year) regardless of the huge personal damage they continue to cause. They've either lost sight of what went on over a decade ago, or just as conveniently, have tried to bury it all, by re-writing history.


Any ideas of just "doing the right thing for a change " seem to be completely outside their blinkered vision. For them, it seems also, the massive adverse PR and indeed, as we have been told, the actual loss of business, seems to be acceptable collateral damage.


The recent Advice from Jonathan Laidlaw QC , drove a horse and cart through Lloyds Bank's " Griggs Review". The FCA also was criticised strongly.  How embarrassing it was during a recent debate, to hear a Minister attempt to defend the indefensible. Ministers, unlike many supportive constituent MPs, think the five million or so SMEs employing over 25 million people , are just nothing to do with them.


On a wider basis it is clear to most of us that almost no one ( except apparently SME Alliance and its members and friends and a few MPs) is prepared to stand up to what have been described as criminally corrupt bankers and their advisors.


If anyone still doubts this idea of corruption, have a look not only at the Advice mentioned above, but also the damning report written by Sally Masterton, " Project Lord Turnbull" issued earlier this year. Five years on, Lloyds finally admitted they had in fact commissioned the report in 2013, after half a decade of denials.

The Report makes devastating reading. Meanwhile the NCA, the SFO, the FRC and the FCA, to name just a few disinterested parties, apparently hope this will all just go away.


Turning to the 72 per cent taxpayer disaster which is RBS, it perhaps the board thinks  has got off lightly this year because of our greater focus on Lloyds. It seems fairly clear to me that the spotlight will be brightly back to shine on RBS and its GRG division in 2019.


May I remind everyone that SME Alliance is a small group of people but one which tries to punch well above its weight. We can do this only because we are extremely focused. We are not trying to change the world, not even the banking system. We are trying to make sure our members get the compensation to which they are entitled so that they can get on with their lives.


I would also like to thank many in the media who have been so supportive with their time this year as well as members of the APPG on Fair Banking ( special mention for Kevin Hollinrake) as well as many MPs who have been helping individual members.
​

We will keep fighting because it is to our mind unacceptable that major financial institutions such as Lloyds , RBS and other banks  and in particular certain senior executives and executive directors of those banks, should continue to deny and cover up the enormous human and other damage they have caused and continue to cause and believe they are and remain above the law.

Best wishes,
​
Nick Gould