FCA steps up efforts to support SMEs

Discussion about the lack of regulatory protections for small andmedium-sized enterprises has gained traction in recent years. Now, theFinancial Conduct Authority has set up a Small Business Unit for SMEs andrecently wrote to CEOs of banks lending to such enterprises as well as insurersproviding SME business interruption insurance. Harvey Knight reports onwhat compliance officers need to know and what reasonable steps should be takento meet the regulator’s expectations.

HarveyKnight is a partner in Withers’ FinancialRegulatory team, where he represents clients with respect to regulatorypermissions, supervisions and enforcement investigations involvingthefinancial regulators as well as various other bodies. Contact him onharvey.knight@withersworldwide.com.

On 15 April 2020, the FCA sent two Dear CEOletters concerning Small and Medium-sized Enterprises (SMEs): one to itsregulated banks lending to SMEs and their owner/managers, the other to itsregulated insurers with a specific focus on SME business interruptioninsurance.