UK CMA review of the SME Banking Undertakings 2002

The UK's Competition and Markets Authority (CMA) has confirmed its decision to review the remaining SME Banking Undertakings 2002 and has launched its consultation seeking views on whether the undertakings need to be updated. In 2002, certain banks signed up a set of legal obligations to target specific features of the SME banking markets which were barriers to competition. This included the provisions referred to as the limitation on bundling provisions, which restricted the banks from requiring an SME customer to open or maintain a business current account in order to access business loans or deposit accounts. Although most of the undertakings were released by the CMA in 2016, the limitation on bundling provisions still remains. The CMA is therefore looking for views and evidence on changes to the structure and competitiveness of SME banking markets since 2016 and whether the limitation on bundling provisions is still appropriate. The deadline for comments is 7 May. In terms of next steps, the CMA expects to consult on its provisional decision in summer, with a final decision published in autumn.