On 2 April 2025, the Competition and Markets Authority (CMA) launched a consultation on its review of those provisions of the SME Banking Undertakings 2002 which remain in force.
Background
The CMA reviewed the SME Banking Undertakings 2002 in 2014 and decided in 2016 to release all but 4 provision in the Undertakings. The 4 remaining provisions prohibit 8 designated banks from compelling an SME customer to open or maintain a business current account as a condition of accessing business loans or deposit accounts.
Review
The CMA is now carrying out a review to determine whether, as a result of any change of circumstances, those remaining provisions are no longer appropriate and need to be varied, superseded or released. In particular, it is consulting on:
- Potential changes of circumstances that may mean that the provisions are no longer appropriate.
- If such changes are identified, whether they mean that the provisions should be varied, suspended or released.
- In the case of identifying the need to vary the provisions, which changes could be made.
Next steps
The consultation closes on 7 May 2025.