Tue, 28 Apr 2020 | BUSINESS NEWS
The Financial Conduct Authority (FCA) has today sent letters to the CEOs of all UK banks warning them against pressuring corporate borrowers to use them for other services as well, taking advantage of their customer’s vulnerable situation in the COVID-19 crisis. Particularly in light of firms needing to raise capital in these conditions.
The regulator said they would not hesitate to take enforcement action against banks they found to be involved in this practice. It said there were "credible reports" of a small number of banks failing to treat their corporate clients fairly when negotiating new or existing debt.
In the letter, the FCA said, “In particular, we have heard reports that banks may have used their lending relationship to exert pressure on corporate clients to secure roles on equity mandates that the issuer would not otherwise appoint them to,"
It refers to a practice where banks are literally just putting themselves forward for roles ‘in name only’ without doing anything to justify getting a slice of the fee pool.
“Tying clients to take additional services, or demanding fees for services not provided, is not in the best interests of those clients”, the FCA said.
The financial watchdog urged banks that were involved in both lending and equity markets to immediately review their controls to ensure that conflicts of interest were being handled correctly.
Specialist drainage and plumbing firm offering drainage management repairs and plumbing services to the commercial and domestic sectors. With over 25 years of experience the company offers a turnkey service highly regarded for its invaluable knowledg...
This is a rare opportunity to acquire a profitable and well-established door and window business located in Wales. This business offers an owner-operator or a bolt-on opportunity, with an advised annual turnover of £397,000. The business benefits fro...
LEASEHOLD
This is a unique opportunity to acquire a profitable and well-established business located in the picturesque village of Fourstones, Hexham. The business boasts an advised annual turnover of £650,000, with plenty of scope for growth.
LEASEHOLD
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.