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LSB to retire Standards of Lending Practice for personal customers

The LSB is to retire its Standards of Lending Practice for personal customers at the end of March 2025. The standards were first published in 2016, and have been reviewed and updated several times. However, the last review found that recent changes, in particular the introduction of the Consumer Duty, mean that there is now considerable overlap between regulatory standards and the LSB guidance, and so the guidance will be wound down. In its place, the LSB will develop new guidance for firms in areas relevant to personal financial services customers – such as how firms can support vulnerable customers and how they can protect customer outcomes while managing digital transactions.

The 2024 review of the equivalent standards for business customers showed that these standards are still useful in setting an appropriate level of protection for SMEs, and they remain recognised by the FCA.

Emma Radmore