RBS fined £29m for giving loan info to Barclays

30th Mar 2010 08:13

Royal Bank of Scotland has been fined £28.6m by the Office of Fair Trading after Barclays blew the whistle that information on loans to professional firms was passed between the two banks.RBS admitted the breaches of competition law between October 2007 and February or March 2008. The fine was reduced from £33.6m to reflect RBS's admission and agreement to co-operate, the Office of Fair Trading said.An OFT investigation found individuals in RBS's Professional Practices Coverage Team had unilaterally disclosed generic as well as specific confidential future pricing information to their counterparts at Barclays. Barclays had used the information in its own pricing the watchdog said, but it will not be fined as it notified the OFT.Under the OFT's leniency policy, a company that is the first to report its participation in an infringement may qualify for immunity from penalties. Provided it continues to co-operate, Barclays is not expected to pay a fine in this case, the OFT added.The disclosures by RBS concerned the pricing of loan products to solicitors, accountancy and real estate firms, a business area where RBS and Barclays are the main providers, the OFT said."Any company that discloses confidential future pricing information to its competitors risks a substantial penalty. It is important that companies operating in the UK understand the seriousness of such conduct and ensure effective competition compliance throughout their organisation," Ali Nikpay, OFT Senior Director of Cartels and Criminal Enforcement, said.