The financial services ombudsman scheme does not extend to small businesses, Chief Minister Howard Quayle has confirmed.

Mr Quayle told the House of Keys the scheme operates as an ’informal dispute resolution service for small-scale consumers’ of financial products in the island.

Jason Moorhouse (Arbory, Castletown and Malew) asked whether the scheme could be extended to allow small businesses to use it. He raised concern at the potential for problems if a bank closed an account at short notice.

Mr Quayle said: ’The role of the financial services mmbudsman scheme is to mediate in relation to disputes between individuals and island-based providers of financial services, rather than to provide an immediately accessible support mechanism for small businesses.

’In any event, the decision of a bank to close an account is generally regarded as a legitimate commercial decision and therefore the Ombudsman Scheme would be likely to decline to mediate.’

He added that in 2017-18, there were only 13 complaints under the scheme about the closure of bank accounts, all made by individuals.

’Neither Treasury nor the Office of Fair Trading are aware of any widespread demand for extending the scope of the ombudsman scheme to corporate bodies,’ said Mr Quayle.