Lord Turner, the chairman of the FSA, said on Tuesday there was not “sufficient evidence” to punish any of the RBS directors under the regulator’s rules.
However, the regulator’s report may enable the government to press charges, according to The Daily Telegraph.
The Companies Act says directors must be able to “disclose [their company’s] financial position with reasonable accuracy at any time” and ensure an “adequate record is made and retained … of any expected loss, liability or contingency material to the assessment of the current position”.
The FSA’s report suggested RBS directors breached these rules, with investigators finding that “RBS appeared uncertain of its capital position at critical times. This included after March 2008”. In addition, they said standard information was hard to find.
RBS nearly collapsed in 2008 because of poor management, inadequate regulation and a flawed supervisory system, the FSA report published on Monday said.
RBS declined to comment.
