Adam Tyler blog: Time for regulatory change
21 August 2015 2830 Views
The National Association of Commercial Finance Brokers (NACFB) is holding an interim conference to support the next set of changes that we need to make in response to the new regulated environment.
On September 23 the NACFB is inviting all its members to join us at the Hilton Metropole in Birmingham.
The Financial Conduct Authority (FCA) has been regulating the commercial sector since April 2014, so why are we making changes now, 18 months later?
The first reason is that the FCA is itself changing the way it regulates, which means that the documents we offer to members and the advice we give them need revision from time to time.
These regulatory changes are not always communicated effectively to commercial brokers by the FCA – by which I mean, we are often asked for our interpretations of various rulings and wordings.
So we see it as our job to take the lead here and to issue clear guidelines where we think that clarity is in short supply from the FCA itself.
It is crucial that these messages get out not only to those brokers who have attained full permission, but also to those trading on interim permission or those who have yet to apply for any permission at all because they are just starting out.
The second reason is that in cases where the FCA’s stance has not changed, that stance has at least been challenged and clarified.
That means we have built up a casebook of very specific queries and FCA-approved answers to those queries.
The NACFB has secured the services of a regulatory lawyer whose task is to oversee some constitutional reforms and the redrawing of such critical documents as our Code of Practice.
We will be engaging with our membership before we reach the extraordinary general meeting along with the regulator, our patrons and other trade associations.
Since inception the FCA has given commercial finance brokers wider options and we have seen the emergence of principals and appointed representatives (ARs) within our sector.
The NACFB’s code of practice and constitution have both been revised to accommodate a new regulatory landscape not only being led by the FCA but also by our lenders and funders.
We cannot make any changes to our practices without reverting to our members to approve the changes that we feel are necessary to keep the commercial finance broking industry in line with the demands of 2015 and beyond.
We need to ensure that the association is protecting our members and preparing the broking industry for a sustainable future.
This is not only about regulatory changes, but to react to the requirements from the 126 lenders that we work with.
They are keener than ever that we encompass regulation and support the broking industry as we forge even tighter links with the asset finance funders, high street and challenger banks, and the alternative lending market.
NACFB members who wish to play their part in shaping their association for the future can register at nacfb.org under the Events listing.
Adam Tyler is chief executive officer of the National Association of Commercial Finance Brokers