Inquiry into SME personal loan guarantees could feed into Government review

The FCA is investigating the requirement lenders impose on small business owners to provide a personal guarantee, and will contribute its findings into the Government's review of the Consumer Credit Act if it discovers "relevant information".

By Neasa MacErlean

Although limited companies are outside the regulator's remit, it will nevertheless make public any issues it discovers in relation to them "so that Parliament and policy makers can consider whether greater protection should be available" to small businesses in this category.