Regulator asks PwC to probe RBS board conduct

LONDON (Reuters) - Britain's financial regulator has asked accounting firm PricewaterhouseCoopers (PwC) to investigate the behaviour of former board directors of Royal Bank of Scotland Group, the Sunday Telegraph said.

The Financial Services Authority (FSA) has asked PwC to examine the bank's risk management process and whether the directors provided proper information to the market about RBS's financial position, the paper said.

The FSA and RBS both declined to comment on the report.

British politicians on Friday criticised the system of bonus awards for Britain's bankers, saying it led to "lethal" risk-taking, and said the FSA should show greater willingness to penalise any banks whose pay structures do not comply with its code of practice.

Since taking over at the helm in November, Chief Executive Stephen Hester has completely shaken up the RBS board to distance the part-nationalised bank from the era of former chief executive Fred Goodwin.

(Reporting by Victoria Bryan, editing by Will Waterman)

Article Published: 17/05/2009