Regulator hires external advisers for RBS small business probe The financial regulator has taken the rare step of hiring external advisers to investigate alleged poor treatment of small businesses by state-backed Royal Bank of Scotland in a sign of how seriously it is treating the issue. On Friday, the Financial Conduct Authority announced it had commissioned a report from Promontory Financial Group, a consultant that specialises in regulatory and compliance issues, and Mazars, the audit firm. The two companies have been asked to examine how RBS behaved towards business customers who were in financial difficulty. It follows serious allegations of poor practice in a report by Lawrence Tomlinson, an entrepreneur and disgruntled RBS customer, working for the government's business department. Mr Tomlinson published an explosive self-commissioned report in November that accused RBS of forcing viable companies into insolvency for its own profit. The claims centred on a unit of RBS called the Global Restructuring Group, which takes in customers who are struggling to repay their debts. GRG aims to restructure, or sell off or close down the businesses if no solution can be reached. A second report commissioned by RBS and conducted by Sir Andrew Large, a former deputy governor of the Bank of England, criticised GRG for having opaque management structures and poor controls. The FCA said it had used powers gained last year to commission an "independent skilled persons report." It is the first time that the FCA has directly appointed outside advisers to produce such a report. The regulator said the review by Promontory and Mazars would initially look at how RBS treated a sample of customers referred to GRG, including some of the cases raised by Mr Tomlinson. It will then assess whether any poor practices are widespread and systematic within the bank. If widespread problems are unearthed, then the assessors will look to identify the root causes of these issues and make recommendations to address any shortcomings identified. The FCA said it expected to publish the findings of the review in the third quarter of this year. Its review follows a move by RBS to appoint Clifford Chance, the law firm, to examine Mr Tomlinson's allegations on behalf of the bank.