replacement) in the next couple of years. And it’s this changing
landscape which is pushing the professionalism agenda for lenders, particularly those that are already regulated by the FSA. Cleary, himself a regulated lender
in the residential market, says this division between regulated and non-regulated is already having an effect. “Lenders regulated by the FSA
are inherently going to apply different standards to those lenders that are not regulated,” he says. “Any lender and broker for that
matter that sees themselves being in short-term lending in the medium term will be watching what is happening in terms of regulation.” Even if a lender has a regulated
arm and a non-regulated arm there will still be an approved person operating within the business. “It’s black and white for them,”
says Cleary. “While most bridging may not be regulated if you’re an approved individual, you cannot do something in the unregulated market that you believe is not good for the consumer even though it’s an unregulated market. “If you do that you’re going to get
found out and you’re going to come across problems.” Alan Margolis, head of bridging
at united Trust Bank, another regulated lender, agrees. “With FSA regulated lenders
and those who have comparable standards, borrowers and lenders can expect full disclosure of all fees and commissions and advertising that is not misleading,” he says. “I think this trend has continued
as more lenders have become FSA authorised and others are in the process of applying. “This, together with the
increasingly competitive nature of the sector and other aspects such as
the formation of the Association of Short Tem Lenders are all driving the improvement of standards.” Colin Sanders, chief executive
of Omni Capital, says improving standards can be seen in the products as well as in the move towards authorisation. “I think that the products and
processes associated with bridging are becoming less opaque, less baffling,” he says. “There’s more to do in this regard but we’re already seeing a better understanding on the part of new-entrant intermediaries and the end- customer.” Cleary acknowledges there is a
desire to improve practice further though. “Clearly, some lenders will want to
do things properly and I have seen a lot of really good standards being applied by different lenders,” he says. “Before the crash the short- term market was a lender
BRIDgIng InTRODuCER septemBeR 2011 7
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