Regulators must prioritise growth impact

The next government must ensure regulators consider the impact of regulations on economic growth as well as market stability, according to Bim Afolami, the City minister and economic secretary to the Treasury, as new research from accountancy firm BDO shows that regulatory risk is now the number one concern for businesses.

Regulators must prioritise growth impact

Jun 10, 2024

The next government must ensure regulators consider the impact of regulations on economic growth as well as market stability, according to Bim Afolami, the City minister and economic secretary to the Treasury, as new research from accountancy firm BDO shows that regulatory risk is now the number one concern for businesses.

The impact of an increasingly regulation-led marketplace on the competitiveness of the UK auto and asset finance industry

UK Parliament’s all party parliamentary group for fair business banking called for an extension of the FCA regulatory perimeter to include SMEs last week. They also suggested raising the threshold for the Financial Ombudsman so that larger SMEs can refer disputes to FOS rather than to seek redress through the courts.

The impact of an increasingly regulation-led marketplace on the competitiveness of the UK auto and asset finance industry

May 28, 2024

UK Parliament’s all party parliamentary group for fair business banking called for an extension of the FCA regulatory perimeter to include SMEs last week. They also suggested raising the threshold for the Financial Ombudsman so that larger SMEs can refer disputes to FOS rather than to seek redress through the courts.

Commission disclosure: between a rock and a hard place?

The Finance and Leasing Association (FLA) has decided not to mandate commission disclosure as part of its lending code currently, opting to wait for the Financial Conduct Authority (FCA) to lead the way, in a move which has split opinion and thrown open the debate once more on whether, when, and how the amount as well as the existence of commission payments should be presented to buyers entering a financial agreement.

Commission disclosure: between a rock and a hard place?

May 20, 2024

The Finance and Leasing Association (FLA) has decided not to mandate commission disclosure as part of its lending code currently, opting to wait for the Financial Conduct Authority (FCA) to lead the way, in a move which has split opinion and thrown open the debate once more on whether, when, and how the amount as well as the existence of commission payments should be presented to buyers entering a financial agreement.

 

Legal & Regulatory News

FLA decides against mandating commission disclosure in code of conduct

May 10, 2024

Comprehensive briefing on commission disclosure and the historic review of motor finance agreements to take place at the AFC Conference UK on 6th June. The long-anticipated project to mandate commission disclosure as part of the Finance & Leasing Association (FLA) code of conduct is not now going ahead. In a private note to members, the FLA has indicated that they will rely instead on the regulator who they expect will consider enforcing disclosure through regulation. An update about Financial Conduct Authority (FCA) intentions is expected later this year.

Auto Investigation

FCA, FOS: differing approaches to DCA

May 03, 2024

The Financial Conduct Authority (FCA) review and the Financial Ombudsman Service (FOS) investigations into consumer claims for compensation regarding potential discretionary commission issues in the motor finance sector could arrive at separate and different outcomes, as the regulators operate under different regimes, according to David Allinson, partner with law firm RPC.

Professional Accreditation

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.