Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what steps he is taking to protect viable businesses from distressed securities funds.

Many businesses rely on funding and advice from creditors such as Private Equity funds for restructuring purposes, and have used this support to strengthen their business. However, it is inevitable that some businesses cannot overcome their financial difficulties. It is right that those who invest in businesses are allowed compensation in the event the company defaults on their debt.

However, the government understands the importance of protecting businesses from unfair or predatory practices by creditors. Anti-asset stripping measures were introduced under the Alternative Investment Fund Managers Directive (AIFMD), which includes specific measures to address concerns about predatory creditors.