On 27 April 2020, the FCA published a statement on the UK Coronavirus Business Interruption Loan Scheme (CBILS) and the new Bounce Back loan scheme (BBL) (together the schemes).

The statement covers the relationship between the FCA rules and the schemes. In particular, the statement provides clarity to relevant individuals under the Senior Managers and Certification Regime in authorised firms involved in the CBILS scheme. These are individuals who are covered by the FCA’s individual conduct rules in COCON. For assessments of creditworthiness and affordability, the FCA will regard individuals’ compliance with relevant requirements of CBILS as compliance with their obligations under COCON 2.1 and 2.2 (with the exception of 2.1.1, 2.1.3 and 2.2.4). The FCA intends to give similar clarity on the BBL scheme when it is formally launched. The statement also covers managing financial crime, the customer due diligence measures that authorised firms should conduct when receiving an application under the schemes.