Statements

APPG on Fair Business Banking Statement Updates

An expanded FOS: a good start, but it is now up to the Government to take the initiative

The All-Party Parliamentary Group (APPG) on Fair Business Banking welcomes the news that the FCA has confirmed that SMEs will be given greater access to the Financial Ombudsman Service (FOS). The new remit will cover businesses with an annual turnover below £6.5m with fewer than 50 employees, or an annual balance sheet below £5m. The FOS will now be able to award a maximum compensation of £350,000. According to the FCA, an additional 210,000 SMEs will be eligible to take their complaints to the Ombudsman Service. The APPG is clear that an extension to the remit of the FOS is
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The APPG calls on Police Scotland to investigate the HBOS Reading fraud

As we reach the 10-year anniversary of the global financial crisis, the media has fixated on the lessons that may, or may not, have been learnt by the financial industry in years since the crisis. For many small businesses, however, and for many of the constituents who make representations to the APPG on Fair Business Banking, there can be no lessons learnt if the financial fraud that has been alleged in the intervening years is not thoroughly investigated. The APPG on Fair Business Banking has made official contact with Police Scotland to urge them to further investigate the HBOS fraud;
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The Chancellor of the Exchequer Meets with Kevin Hollinrake MP

This week, the Co-Chair of the APPG on Fair Business Banking, Kevin Hollinrake MP, met with the Chancellor of the Exchequer, The Rt Hon Philip Hammond MP, to discuss in greater depth the proposals in our report, Fair Business Banking for All. The Chancellor confirmed that he is looking carefully at our detailed proposals to provide a more accessible dispute resolution mechanism for small businesses with an independent Financial Services Tribunal. Kevin Hollinrake MP said: “I am extremely pleased that the Chancellor is engaging closely with the proposals advocated by the APPG, particularly the establishment of a Financial Services Tribunal.
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Statement on the FCA’s announcement regarding further investigative steps in relation to RBS GRG - 31 July 2018

Today (31.07.18) the FCA announced that it does not have the regulatory powers to take disciplinary action against RBS or the individuals involved in the GRG scandal by imposing financial penalties or further regulatory action. Crucially, the FCA announced “The fact that GRG was largely outside the jurisdiction of the FCA is important. There are no enforceable regulatory rules, for example ‘conduct of business’ rules, against which to assess GRG’s treatment of SME customers. The relationship between RBS and its customers was principally governed by the terms and conditions of the commercial contract between them. The steps RBS could take
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Treasury Select Committee “doubtful” that ombudsman is ready to handle SME cases - 27 July 2018

The Treasury Select Committee has been taking evidence on the Independent Review of the Financial Ombudsman Service (FOS) to determine whether expanding the remit of the FOS will provide SME customers with an effective and quality service. However, the Chair of the Treasury Select Committee, the Rt Hon Nicky Morgan MP, has today written to the FCA, who are consulting on the proposals to expand the remit of the FOS, to express her doubts over the ability of the organisation to adapt quickly to the challenges faced by an expanded remit. Ms Morgan Said: “The Committee is doubtful as to
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