the whole spectrum of commercial finance. LH: That’s hit the nail of the head, as Adam said earlier, the NACFB covers all commercial finance whereas we have our job to do which is short-term lending. We have produced a booklet for brokers to use as a tool explaining the different terminology which may throw the more unsophisticated borrower and it also explains some of the myths.
Moving onto regulation, the real threat is not from the FSA but from Europe. Trade bodies in the residential sector like the CML and AIFA and AMI all have devoted policy people who spend time in European parliament and our Houses of Parliament. Bridging is a small sector but what kind of resource do you have?
AB: ASTL have very formal representation and we have dialogue with the Treasury. We have won over the Treasury with the FSA to the extent that the recommendation to Europe is, that because of the representation by the ASTL, the short-term lending industry will be excluded from the European Directives which will affect regulation in the UK. It may not end up finished that way but it is crucial everyone understands the Treasury does talk to the ASTL. AT: Lobbying is extremely difficult, extremely timely and costs a lot of money. The ASTL and the NACFB won’t have the resources to pay a professional lobbyist so we do a lot ourselves. It does go on but we probably don’t shout about it enough.
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AB: I feel that the ASTL is more like an elegant swan that just looks beautiful gliding down the Thames but underneath its legs are going at 100mph. MG: As we come under the microscope more and more from the national press, with the ASTL being the go-to organisation for comment will be critical to defend the sector. As far as the AOBP is concerned, AMI is not looking after broker interests so it’s really important that’s articulated from the AOBP as well. AT: And that’s where it comes down to credibility. Make sure you have the people behind you who are right before you voice your opinions through those doors. As soon as the national press get a hold of it and you’ve done something wrong, you’re finished.
What should be bridging trade bodies priorities?
AC: For me it’s not about regulation, it’s about the good behaviour of people in the industry in terms of transparency and how they manage their business and how they treat their customers etc. Regulation is something further down the line that comes into play. The buy-to- let market isn’t regulated but it’s a very well run market. Customers get dealt with, in the main, very well and consistently by all the players. That’s not happening in the short-term space in my opinion. What I’d like to see is pro-active activity so that we get our house in order before someone comes and does it to us. MG: And that is a real fear.
Do you think the trade bodies in the bridging sector provide good value for money? Yes or no?
LG: Absolutely. MS: Yes. MG: Yes and in the ASTL’s case they could even send out a message by increasing the cost of membership. If you’re doing more then you’re entitled to increase that. MF: I would say yes unequivocally and I would measure that against the potential regulatory fees. If we had full on regulation it could be argued that it represents very good money. Paul Brett: Yes. WS: Yes. AC: Too many so I would probably say no. RJ: No. James Rainbird: Yes. LS: Yes.
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BRIDGING INTRODUCER MARCH 2012 27
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