Royal Bank of Scotland has been fined £28.6 million by the Office of Fair Trading (OFT) after OFT found RBS guilty of breaking the competition law. The OFT started its probe when Barclays Bank told OFT that RBS had passed it confidential information about the pricing of loans.

RBS broke the rules between October 2007 and February or March 2008.

In its investigation, OFT found that RBS executives provided information on how RBS priced its loans to professional services firms such as lawyers and accountants to giving their counterparts at Barclays. OFT also said that there is evidence Barclays used that information to set its own prices.

However, Barclays was not punished as it reported the matter to the OFT under its leniency policy. This policy gives the first company to report any breach immunity from penalties.

"Any company that discloses confidential future pricing information to its competitors risks a substantial penalty," said Ali Nikpay, the senior director of cartels and criminal enforcement in OFT.