Mortgage fines the latest blow for beleaguered RBS
State-backed Royal Bank of Scotland is reported to be facing a multi-million pound fine from the City regulator for giving poor advice to mortgage customers.
The lender, which is 80% owned by taxpayers, is expected to be handed the penalty by the Financial Conduct Authority today, according to Sky News.
It said RBS was facing a penalty of around £15m although other reports suggested it would be higher.
The fine was reported to relate to inadequate advice given to consumers who took out mortgages with the bank.
RBS and the FCA both declined to comment.
The fine will represent the latest in a string of financial hits the bank has faced including fines and compensation pay-outs in the wake of a series of scandals. These include £3.25bn to cover payment protection insurance (PPI) mis-selling and £1.3bn for interest rate swaps – complex financial products which were sold to small firms.
It has also faced hundreds of millions of pounds in fines as part of the Libor rate-rigging scandal and also paid out to settle sanctions-busting allegations with US authorities.
RBS made a loss of £8.2bn last year which included making provisions for past scandals as well as the cost of setting up its internal "bad bank" to dispose of unwanted toxic assets.
But it swung to a pre-tax profit of £2.65bn for the first half of this year on the back of the resurgent economy
Ulster Bank in Ireland, meanwhile, made £55m in the first six months.