We have today launched a review of the Standards of Lending Practice for business customers. The outcomes focussed Standards provide protections for SMEs with a turnover of up to £25 million, and are formally recognised by the FCA.
The review will consider whether updates to the Standards are required to ensure they continue to reflect industry best practice.
We are seeking the views of our registered firms, industry stakeholders and those that represent business customers through a consultation paper, which can be accessed here. It sets out the context for the review, asking for views across the following areas:
- The impact of economic and regulatory developments, looking at whether any changes in the business lending landscape should be taken account of in setting best practice when providing finance to business customers.
- The protections provided by the business Standards, looking at whether the protections in the Standards continue to reflect industry best practice.
- Opportunities to develop new best practice and guidance, exploring whether the business Standards could build on more recent areas of focus for the industry, such as inclusion and sustainability.
- The scope of the business Standards, looking at whether the products covered by our business Standards, or wider Standards framework, are appropriate or whether further products could be covered to ensure consistent protections for business customers across the lending industry.
We welcome responses to the questions raised in this consultation, and any related feedback, by 10 August 2023. Please send responses and any supporting information to businessstandards@lstdb.org.uk.
