Central Bank to aid FSA probe of RBS

The Central Bank will work with the UK’s Financial Service Authority (FSA) on an investigation into the RBS group’s technical failure, expected to cost the bank more than the £125m (€158m) set aside to cover compensation payment.

The FSA is taking particular interest in what happened in Ireland. The UK’s financial watchdog has ordered RBS to give it a detailed review that looks at why the crisis in RBS’s Irish arm, Ulster Bank, took longer to resolve than in its UK arm.

The Central Bank said it would be several months before any investigation into what happened in RBS and Ulster Bank can be established. Ulster Bank confirmed that it will be subject to the FSA’s investigation.