FCA confirms role in RLS

FCA has confirmed its approach to regulating firms in relation to the Government Recovery Loan Scheme that was launched by the British Business Bank on 6 April to replace the BBLs and CBILS which are now closed to new applications.

Most of the lending available as part of the RLS will not constitute a regulated activity – but where there is regulated lending FCA’s rules will apply as usual, including its CONC rules on creditworthiness assessments.

FCA notes that AML requirements will also apply in any event and that lenders should carry out appropriate AML and fraud checks on applications.