Regulator “not good enough” at tackling SME finance worries

SMEs are facing a growing credit crunch, while financial regulators are failing to tackle one of the key obstacles to small business gaining access to the finance they need for growth, according to the Federation of Small Businesses (FSB). Its research shows just half (53%) of SME credit applications were successful in the final three months of 2023, significantly down from a 62% success rate in the previous three months.

Regulator “not good enough” at tackling SME finance worries

Apr 25, 2024

SMEs are facing a growing credit crunch, while financial regulators are failing to tackle one of the key obstacles to small business gaining access to the finance they need for growth, according to the Federation of Small Businesses (FSB). Its research shows just half (53%) of SME credit applications were successful in the final three months of 2023, significantly down from a 62% success rate in the previous three months.

Viewpoint: FLA broker accreditation scheme

Following the recent Asset Finance Connect (AFC) webcast on the Finance & Leasing Association’s (FLA) broker accreditation scheme, AFC asked an investor in asset finance lenders and brokers his view on the FLA proposals for the scheme. Brokers are unsurprisingly reluctant to disagree publicly with their lender-partners. This investor prepared the following for us but asked not to be named.

Viewpoint: FLA broker accreditation scheme

Apr 18, 2024

Following the recent Asset Finance Connect (AFC) webcast on the Finance & Leasing Association’s (FLA) broker accreditation scheme, AFC asked an investor in asset finance lenders and brokers his view on the FLA proposals for the scheme. Brokers are unsurprisingly reluctant to disagree publicly with their lender-partners. This investor prepared the following for us but asked not to be named.

Regulatory reform essential for Fintech innovation

The next government must make “regulatory certainty” a cornerstone of the financial services regime, amid concerns that regulatory stagnation and regulator resource limitations are having a detrimental impact on the development of Fintech companies and innovative products and services, according to a report produced by the Tony Blair Institute for Global Change in collaboration with the Startup Coalition.

Regulatory reform essential for Fintech innovation

Apr 18, 2024

The next government must make “regulatory certainty” a cornerstone of the financial services regime, amid concerns that regulatory stagnation and regulator resource limitations are having a detrimental impact on the development of Fintech companies and innovative products and services, according to a report produced by the Tony Blair Institute for Global Change in collaboration with the Startup Coalition.

 

Legal & Regulatory News

Bank of England holds interest rates at 5.25%

Mar 21, 2024

The Bank of England has announced that the base rate of interest will remain unchanged at 5.25% as widely expected. Despite a surprise fall in inflation in February to 3.4%, the central bank's Monetary Policy Committee (MPC) chose to hold the rate at 5.25% for the fifth time in a row.

Auto Investigation

Viewpoint: It’s time to take the fight back to the regulators

Apr 12, 2024

Stephen Bassett, AFC’s community head for UK asset finance professionals, looks at the background to the FOS decisions over discretionary commission in vehicle lending. The news that Barclays is mounting a legal challenge to the Financial Ombudsman Service (FOS) ruling over unfair discretionary commission arrangements on a conditional-sale agreement for a car purchase is the first sign that lenders are challenging regulators to answer the obvious question about the motor finance market: what exactly have they done wrong?

Professional Accreditation

Why asset finance brokers should get accredited by the FLA

Apr 17, 2024

During the latest Asset Finance Connect (AFC) webcast, representatives from the Finance and Leasing Association and the broker community came together to discuss the FLA’s broker accreditation scheme and its implications for the broker channel. Announced by Chair John Phillipou during February’s Finance & Leasing Association (FLA) annual dinner, the FLA’s new broker accreditation scheme is designed to drive through changes in the asset finance broker-lender channel that the FLA hopes will improve efficiency and increase both compliance and channel transparency.