April 28, 2020 / 8:32 AM / a month ago

UK regulator tells banks not to pressure corporate customers

LONDON, April 28 (Reuters) - Britain’s markets watchdog said on Tuesday it might take enforcement action against banks that are putting pressure on their corporate borrowers during the pandemic to take other services as well.

The Financial Conduct Authority said it has heard “credible reports” of a small number of banks failing to treat their corporate clients fairly when negotiating new or existing debt.

“In particular, we have heard reports that banks may have used their lending relationship to exert pressure on corporate clients to secure roles on equity mandates that the issuer would not otherwise appoint them to,” the FCA said in a “Dear CEO” letter to heads of banks.

“We will be looking into this further, but want any practice of this nature to cease immediately.” (Reporting by Huw Jones Editing by Maiya Keidan)

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