The FCA’s 26 October multi-firm review identifies slow and complex onboarding for some defence SMEs. It describes friction and delays more often than widespread refusal, and says existing requirements do not generally prevent banks from serving lawful defence businesses.[1]
The review’s boundaries
| Item | Detail |
|---|---|
| Focus | Account opening, servicing, risk decisions and governanceSource 1 |
| Approach | Assess the particular business, activity and geographySource 1 |
| Firm expectations | Improve processes and management informationSource 1 |
| Legal effect | No new obligations createdSource 1 |
The FCA expects proportionate compliance checks and prompt responses to the findings. It also notes that incomplete customer information can contribute to delays. Commercial risk appetite and financial-crime obligations remain relevant.[1]
A useful control lesson
An onboarding team needs to distinguish time spent awaiting customer documents from avoidable internal delay. Recording reasons for escalation, repeated information requests and final decisions can expose inconsistent treatment. Applying that lesson to another sector requires its own risk assessment; the review is not evidence that every delayed application should be accepted.[1]
Sources & further reading
- Defence SMEs: access to banking services Financial Conduct Authority · 26 Oct 2026 · Accessed 27 Oct 2026