The National Association of Commercial Finance Brokers (NACFB) has warned that commercial lenders are pulling regulated products ahead of the Financial Conduct Authority’s (FCA) upcoming Consumer Duty deadline.
The trade body voiced said this will pose challenges for both the industry and small to medium enterprises (SMEs).
The NACFB previously highlighted this as a potential unintended consequence of the Consumer Duty, where lenders pull away and claim that exempt business falls out the scope of regulation.
Paul Goodman (pictured), chair of the NACFB, said: “The NACFB firmly believes that the Consumer Duty should enhance transparency and foster fair outcomes for consumers without unduly impeding the vital flow of funds to SMEs.
“We will continue to engage with regulators and lenders to address this concern with a view to ensuring that the duty is implemented in a manner that supports responsible lending alongside access to finance for all businesses.”
UK Finance also recently voiced concerns over the impact Consumer Duty was due to have on business lending.
David Postings, chief executive of UK Finance, said: “I fear that this will result in product withdrawal in order to avoid problems down the line.”
