James Sherwin-Smith, CEO of Growth Street, comments ahead of this afternoon’s Public Accounts Select Committee session on financial services mis-selling with the Financial Conduct Authority:
“The FCA clearly has a lot of questions to answer today when it appears in front of MPs. We whole heartedly agree with Philip Augar’s comments on the Today programme this morning, who was right to question why the regulator has dropped a planned inquiry into banking culture.
“It therefore comes as no surprise that a recent National Audit Office report suggests that the Financial Conduct Authority cannot be confident that there is not further mis-selling of financial services in the UK, despite the recent scandals of the mis-selling of PPI to consumers and Interest Rate Swaps to SMEs, and the significant redress and financial penalties resulting from these activities.
“Clearly, there is more that the FCA can do to prevent further scandals. Growth Street supports the #APR4SMEs campaign, which has called on the Government to make it mandatory for all commercial finance products targeted at SMEs to carry an APR, a simple metric that would help businesses easily compare the cost of finance across all products and providers. The failure of commercial finance providers to publish this information serves to create an opaque, costly and confusing market place for SMEs wishing to finance their business on the best terms.