Simon Walker CBE appointed independent chair of UK SME Complaints and Resolution Review

Simon Walker CBE - the former Director General of the Institute of Directors - has been appointed as independent chair of the finance and banking industry's review into the complaints and alternative dispute resolution (ADR) landscape for the UK's SME market.

Commissioned by UK Finance, the trade body representing the UK's finance industry, the independent review will consist of an evidence-based, comprehensive analysis of the scale and complexity of banking complaints from SMEs. It will focus particularly on disputes between financial services providers (excluding insurance products) and small business customers that remain unresolved through the normal customer complaint procedure and may be unsuitable for court processes.

All banks have robust complaint arrangements which attempt to put things right quickly, apologise and, if appropriate, offer some compensation for costs incurred and payment in recognition of distress and inconvenience. However, in some cases complaints go unresolved to the satisfaction of the customer or cannot be dealt with by this internal procedure. A key objective of the ADR review, which was also referenced in the Financial Conduct Authority's (FCA) consultation on SMEs as users of financial services, will be to identify solutions that would be capable of producing fair outcomes for both SMEs and providers.

The review will be led by an independent Chair - Simon Walker CBE - who has been appointed by a diverse selection panel comprised of representatives from the Fair Business Banking and Finance APPG and the Federation of Small Businesses as well as the independent chairs of the UK Finance SME Advisory Group and the IFABL Standards Council.

As Chair, Simon will have independent leadership over the review process that will include in-depth analysis of SME customer disputes and outcomes involving research with SME users of financial services. The review will also examine different dispute resolution processes, including those operating in different sectors and countries. The review is intended to produce evidence-based conclusions to support recommendations for the industry and government as appropriate. The Chair will publish his findings in a report with full editorial control.

The review process will include academic research with SMEs and data analysis. UK Finance will provide funding and basic administrative support.

Simon Walker CBE, Chair of UK Finance independent ADR review, said:

SMEs are an important driver of growth and how the sector interacts with financial providers is crucial in helping support the UK economy. This review is an important step in understanding the best route to SME complaints redress with all options up for consideration. I am determined that this will be a thorough review with no stone left unturned, using a combination of academic research, stakeholder evidence and international comparisons to identify best practice.

Teresa Graham CBE OBE, Chair of UK Finance SME Advisory Group said:

It's essential that any review of SME market complaints is rigorous, impartial and objective, with the selection of the chair critical in achieving this. Simon's credentials more than speak for themself and he was a unanimous choice for the selection panel.

Martin McTague, Policy Director for the Federation of Small Businesses said:

When small businesses have faced disputes with their bank, it has often felt like a ?David and Goliath? situation. The issues around complaint-handling and redress must be tackled, and we are delighted to see fairness will be at the heart of this review. We welcome Simon's appointment and look forward to working with him to help find new solutions.

Ends

Area of expertise:

Commercial finance

Notes to editor

1. About Simon Walker:
Simon Walker CBE was appointed as lead non-executive director of the Department for International Trade in November 2016. He is currently a Governor at the Westminster Foundation for Democracy. Additionally, he is a non-executive advisor at Greenbrook Communications.
Simon was formerly Director General of the Institute of Directors, a role he held from 2011 to 2017. In this role, he worked to modernise the organisation and increase the voice of the business community it represented. During this time, Simon was also chairman of the Global Network of Directors? Institutes and a non-executive director at the European Confederation of Directors? Associations.
Simon has previously served as Chief Executive of British Private Equity and venture Capital Association (BVCA) from 2007 to 2011. Prior to this role, Simon had an extensive career in communications. Simon was Director of Corporate Communications and Marketing at Reuters, Communications Secretary to HM The Queen at Buckingham Palace and Director of Corporate Affairs at British Airways.?
2. About Teresa Graham:
Teresa Graham graduated from Newcastle University in 1977. (She was awarded a Fellowship in 2012). She joined the Newcastle upon Tyne office of a Big 4 firm as a student accountant and transferred to the firm?s Department of Privatisation Services in London in 1989. From December 1986 to August 1987, she was seconded to the UK Government?s Enterprise and Deregulation Unit reporting directly to Lord Young, the Secretary of State for Employment and then Trade and Industry. In March 1988 she was appointed to the Government?s Deregulation Advisory Panel for a two year term and served through two decades of administrations.
Teresa joined Baker Tilly (now RSM) in 1989 and during her time there she headed up their Business Services Department leading in particular on audit and tax.
Teresa stepped down as Deputy Chair of the Government?s Better Regulation Commission (BRC) in 2008 after twenty years. She is currently Chairman of the Administrative Burdens Advisory Board of HMRC and a member of their Office of Tax Simplification and immediate past Chair of the Regulatory Board of the Royal Institution of Chartered Surveyors introducing regulation for firms as well as rationalising the existing regulation of members and receiving an honorary membership in recognition of her contribution to the Institution.
For the RICS she recently chaired a group from their profession, the banking world, the legal world and the insurance world devising a set of protocols for commercial valuation lending focussing on fairness for all parties.
In terms of major pieces of work for Government, she completed a high profile review on pre-packaged administrations for SoS Cable which was published in June 2014. Her publications also include a major piece of work on litigation and compensation for the Lord Chancellor, an independent review for the Chancellor of the Exchequer on the Small Firm?s Loan Guarantee Scheme and a ground breaking study for the Prime Minister, ?Less is More?.
She was also a member of the Financial Reporting Council Group which produced ?Louder Than Words? ? a study into the complexity of corporate reporting.
For many years she was a patron of Network, a national forum for women in business and is immediate past Chair of Women of the Year.
Teresa was awarded a CBE in the 2007 New Years Honours list for public service and an OBE in the 1997 New Years Honours List for services to better regulation and the small firms sector.
She now works independently focusing on her three passions ? strategic advice to ambitious, growing businesses, liberating these businesses from the fetters of red tape and ?Head of Parties and Fun? at The Lexi Cinema (<a href="https://emea01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.t…; rel="noopener noreferrer" target="_blank">www.thelexicinema.co.uk</a>), a social enterprise, digital, boutique cinema in North London covenanting 100% of its profits to a charity in South Africa called The Sustainability Institute Trust (<a href="https://emea01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.s…; rel="noopener noreferrer" target="_blank">www.sustainabilityinstitute.net</a>).
She holds a number of appointments, including non-executive, mentoring and advisory roles in growth businesses.
3. The UK Finance SME Advisory Group consists of representatives from the following:
<ul><li>British Chambers of Commerce</li>
<li>Federation of Small Businesses</li>
<li>Engineering Employers Federation</li>
<li>Society of Motor Manufacturers and Traders</li>
<li>Federation of Master Builders</li>
<li>British Business Bank</li>
<li>Professional Standards Council</li>
<li>British Independent Retailers Association</li>
<li>All Party Parliamentary Group on Fair Business Banking</li>
<li>Responsible Finance</li>
</ul>4. The selection panel for the Chair of the UK Finance ADR Review was made up of:
<ul><li>Martin McTague, Policy Director for the Federation of Small Businesses</li>
<li>Lucy Armstrong, Chair of the Alchemists, Independent Chair of the Invoice Finance and Asset Based Lendings Standards Board</li>
<li>Heather Buchanan, Policy Director at the Fair Business Banking and Finance All Party Parliamentary Group (APPG)</li>
<li>Teresa Graham, CBE OBE, Chair of UK Finance SME Advisory Group.</li>
</ul>