The Government is being urged to probe a controversial group that represented thousands of small investors in Royal Bank of Scotland.
Bob Neill, chair of Parliament’s Justice Select Committee, has asked Justice Secretary David Gauke to look into the RBS Shareholders Action Group, following an investigation by The Mail on Sunday.
Mr Neill wants to ensure that such action groups are regulated in the future. This could pave the way for criminal investigations if serious wrongdoing is suspected.
RBS Shareholders Action Group was a company set up to win compensation for investors who claim they were hoodwinked into buying shares in the bank at the height of the financial crisis in 2008.
Last year, Manx Capital – an investment vehicle of tycoon Trevor Hemmings, who lost money on his shares – took control of the claim from RBS Shareholders Action Group.
The action group was co-founded in 2009 by Irish businessman Gerard Walsh, described as a ‘fraudster’ by Jersey Royal Court in 2014.
Last June, the investors won a £200 million payout from RBS. But they are still awaiting their money.
Investors had been told to expect around £100 million.