4Small and medium sized businesses: information to credit reference agencies
(1)The Treasury may make regulations that impose—
(a)a duty on designated banks to provide information about their small and medium sized business customers to designated credit reference agencies, and
(b)a duty on designated credit reference agencies to provide information about small and medium sized businesses to finance providers.
(2)The regulations must provide that the duty in subsection (1)(a) only applies where—
(a)a credit reference agency makes a request to a bank, and
(b)the business customer to whom the information relates has agreed to the information being provided to a credit reference agency.
(3)The regulations must provide that the duty in subsection (1)(b) only applies where—
(a)a finance provider makes a request to a credit reference agency, and
(b)the business to whom the information relates has agreed to the information being provided to the finance provider.
(4)The regulations may provide that the duty in subsection (1)(b) only applies where other conditions are met, such as the finance provider—
(a)complying with the credit reference agency’s terms and conditions, and
(b)providing information on its small and medium sized business customers to the credit reference agency (subject to the agreement of those customers).
(5)The regulations must describe the information—
(a)to which the duty in subsection (1)(a) applies;
(b)to which the duty in subsection (1)(b) applies;
(c)which may be required as mentioned in subsection (4)(b).
(6)The regulations may make provision about—
(a)how a request for information must be made by a credit reference agency or finance provider;
(b)the time period within which information must be provided following a request;
(c)the form in which information must be provided;
(d)how a business may indicate agreement for the purposes of subsection (2)(b), (3)(b) or (4)(b) (and for the purposes of subsection (2)(b) this may include imposing an obligation on a designated bank to include an appropriate term in its standard terms and conditions or to otherwise seek agreement).
(7)The regulations must make provision for the designation of banks and credit reference agencies by the Treasury, and the regulations may in particular provide for—
(a)conditions that must be met for a bank or credit reference agency to be designated;
(b)considerations that the Treasury may take into account before deciding whether to designate a bank or credit reference agency;
(c)the Treasury to consider the advice of another person before making a designation;
(d)the procedure for designating a bank or credit reference agency;
(e)how the list of designated banks and credit reference agencies must be published;
(f)the revocation of a designation.