The Financial Conduct Authority (FCA) has renewed its recognition of the Lending Standards Board’s (LSB) Standards of Lending Practice for business customers (the Business Standards).
The outcomes focused business Standards provide protections for SMEs with a turnover of up to £25 million, in an otherwise unregulated environment. They set the benchmark for good lending practice in the UK, outlining the way registered firms are expected to deal with their business customers throughout the entire product life cycle.
The business Standards were first recognised by the FCA in 2020, and renewed recognition happens on a three-yearly basis. There are currently 16 signatories to the Business Standards, including many of the UK’s largest banks.
The business Standards are one of only four industry codes to be recognised by the FCA. Recognised codes must – among other criteria – help markets function well and represent an effort to define, set or raise standards.
Emma Lovell, Chief Executive of the LSB, comments: “The FCA’s ongoing recognition lends further weight to the importance of the business Standards.
“The Standards provide vital protections for SMEs at a time when it is needed most. We encourage all firms to sign up as a priority. Registration and adherence to the Standards send a clear message to customers that they will be treated fairly.”
Read the full FCA statement here.