"We will be looking into this further, but want any practice of this nature to cease immediately."
The FCA published a strongly worded Dear CEO letter this morning (28 April 2020). The letter flags that the FCA has had "credible reports" of "a small number of banks" taking advantage of business customers needing funding and other help as a result of the pandemic.
Tellingly, the letter has been signed by the heads of both the retail and wholesale supervisory teams at the FCA and I think that as much as it is a demand to cease any poor conduct, it is an invitation to adversely affected businesses to bring such poor treatment to the attention of the FCA.
For many, this letter will be greeted with a feeling of "about time too"; since the UK Government announced its desire to help businesses, some banks have been seen as being less than aligned with such a "whatever it takes" approach.
Time will tell if this letter is part of a movement to bring the banking industry to where the Government clearly want it to me. If not, it may just be another stick with which the FCA can beat the industry (the banks this time) post-pandemic when it is time for accounts to be settled. And in these times when we are reliant so much on the NHS, a quote from an albeit fictional doctor seems apt: "One way or another our karma will always find us."
We expect financial firms to continue to provide strong support and services to customers during this period of disruption...If we find further evidence to support these concerns, we will not hesitate to take action, as this conduct has no place in well-functioning markets
https://www.fca.org.uk/publication/correspondence/dear-ceo-ensuring-fair-treatment-corporate-customers-preparing-raise-equity-finance.pdf
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