Question

To ask the Secretary of State for Business, Innovation and Skills, what investigations he has made into allegations of mis-selling relating to loans made under the Enterprise Finance Guarantee scheme; and when such investigations were initiated.

Delivery of the Enterprise Finance Guarantee (EFG) scheme is devolved to the participating lenders, all of which are subject to a continuous cycle of independent external audit to monitor their compliance in their operation of the scheme. Some of the larger lenders have supplemented this process with their own internal reviews. The British Business Bank will continue to monitor the findings of these exercises closely.

The Department requires all lenders participating in the EFG scheme to give clear and accurate information to borrowers. In February 2014 BIS wrote to all lenders participating in the EFG scheme reiterating their operational responsibilities, including the way in which it is presented to their front line staff and customers.