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.
This business presents a robust opportunity with a diverse range of electrical services and a loyal client base across commercial, industrial, and private sectors.
A well-established London based consultancy with expertise in complex international environments is seeking immediate equity investment or a sale of the business and/or its assets. Interested parties are advised to express their interest by 5:00 p.m....
An established dealership specialising in used cars and motorhomes presents a promising investment with significant growth potential.
29
|
Apr
|
UK administrations update: April 22 – 29 | ADMINISTRATION
Since our last update, the following businesses have been co...
29
|
Apr
|
Building services group SI Sealy undergoes a Management Buyout | MBO/MBI
Stockport-based decarbonisation and building services design...
28
|
Apr
|
French group Egis buys U.K. engineering firm Omnia Projects | BUSINESS SALE
French group Egis has acquired Omnia Projects, a UK-based en...
31
|
Oct
|
Fiat and Groupe PSA plan to join forces | MERGER
Fiat Chrysler Automobile (FCA) and Groupe PSA have confirmed...
Business Sale Report is the complete resource for finding genuine acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
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.