MP backs calls for investigation into RBoS Shareholders Action Group Company

Colin Clark MP with Barry Middleton outside the RBS branch in Inverurie
Colin Clark MP with Barry Middleton outside the RBS branch in Inverurie

Scottish Conservative MP Colin Clark has backed calls for an investigation into a company that was set up to sue the Royal Bank of Scotland (RBS).

The MP for Gordon has written to Lord Chancellor and Justice Secretary David Gauke urging action from the UK Government.

The issue was raised with Mr Clark by a constituent at a recent surgery, Alfred Middleton from Inverurie, who is a shareholder in RBS.

The claimants secured a £200million settlement from RBS last summer.

However, solicitors for the claimants have not yet received all the money from RBS and only about £25million has been paid to investors so far. A legal battle is ongoing between the Action Group Company and Manx Capital, the investment vehicle and major claimant that took control of the mass legal claim and secured the settlement on behalf of the claimants..

In his letter, Mr Clark said that investigations by a Sunday newspaper had raised serious questions about the credibility of the Action Group Company.

He has joined parliamentary colleagues including Kevin Hollinrake, Conservative MP and co-chair of the All Party Parliamentary Group on Fair Business Banking in calling for an inquiry.

Mr Clark said: “This is an issue that was raised with me by a constituent that is directly affected by issues with the settlement agreed with RBS last summer.

“Many RBS shareholders believe that the rights issue undertaken by RBS in 2008 was promoted on a misleading basis.

“They believe there were serious omissions of information which should have been brought to the attention of investors.

“The RBS Shareholders Action Group Company was set up in 2009 purportedly to represent the interests of those investors.

“However, since the £200million settlement was agreed, a very small fraction of that sum has been paid out.

“There are serious concerns about the Action Group Company and the lack of regulation in place to protect shareholders.

“I have now written to the Justice Secretary to join calls for an investigation into the RBS Shareholders Action Group Company, which should happen as a matter of urgency.”