Yeah mines is waaaaaay different to that. I found the culprit yesterday. My rearset being fully adjustable...back, forward, up, down and so on. has two spacers where the peg assembly meets the main body attached to the bike, which is held by two massive allen bolts.
So these allen bolts slide through the spacers which are probably 8 to 10mm thick so I get a run from rear to front inwards.
I removed the spacers and it looks better, however the spacers (i believe) are there to make the distance outwards the same as the brake side. The brake side needs the spacers for the rear master cylinder to clear the attachment points for the accessory pillion pegs.
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