Source · Select Committees · Treasury Committee
Recommendation 20
20
Deferred
Paragraph: 111
FOS remit for business lending personal guarantees reveals an unfair, inconsistent support gap.
Conclusion
We agree with the FOS that the current approach to personal guarantees on business lending represents a gap in its remit that fails to provide the kind of support to 38 SME Finance SMEs that the service exists for. The fact that the FOS cannot assist business owners or directors over misapplied guarantees, but can do so for consumers, represents an unfair inconsistency in how the FOS supports consumer versus business cases.
Government Response Summary
The government notes that the committee's conclusion regarding the FOS's inconsistent support for SMEs on personal guarantees is primarily for the independent Financial Conduct Authority (FCA) to consider.
Paragraph Reference:
111
Government Response
Deferred
HM Government
Deferred
The Government notes these recommendations are mainly intended for the FCA to consider, given its status as an independent, non-governmental organisation, and its role in relation to the FOS.