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Opinion
Consumer new car finance volumes down 11%
Plea for post-Brexit harmony on rules
A major financial trade body has called on the government to ensure that there remains a significant degree of regulatory harmony across Europe, even after Brexit, and has proposed a framework for how this can be achieved. UK Finance has published a new report
Our new figures, released last month, show that new business volumes in the point of sale (POS) consumer new-car finance market fell by 11% in September, compared with the same month in 2016, while the growth in the value of new business was flat over the same period. In the third quarter of 2017 overall, new
business was up 1% by value, but fell 9% by volume. The percentage of private new-car sales
financed by members through the POS held steady at 86.0% in the 12 months to September. The POS consumer used-car finance
market reported new business in September up 9% by value and 3% by volume, compared with the same month last year. The performance of the POS consumer
new-car finance market in September continued to reflect recent trends in private new-car sales. Despite subdued consumer confidence,
new business volumes in the POS consumer car-finance market overall were stable in the first nine months of 2017, compared with the same period in 2016.
Geraldine Kilkelly Head of research and chief economist, Finance & Leasing Association
setting out a proposal of how customers across Europe could continue to benefit from access to the cross-border EU and UK banking markets following the UK’s exit from the European Union (EU). The report Supporting Europe’s Economies and
Citizens: a modern approach to financial services in an EU-UK Trade Agreement sets out a framework for cross-border market access that can be delivered through a free- trade agreement. Such an approach could be built around
three overarching principles: l Mutual recognition of each other’s regulatory approaches. l The appreciation that different customers have different levels of sophistication. l A high degree of both regulatory and supervisory cooperation. The proposed model can be tailored
to the needs and capabilities of large institutions such as governments, banks, and businesses, mid-sized firms, and financial professionals, as well as smaller companies and retail customers. The proposed model is based on World
Trade Organisation rules. UK Finance chief executive, Stephen
Jones, said: “The UK is currently the second largest exporter of services worldwide. Tens of thousands of customers, and billions of euros of banking and capital markets products and services, are reliant on the UK remaining Europe’s most interconnected financial centre.
“As we near phase two of the Brexit
negotiations, we have designed an ambitious, credible, and positive model which EU and UK policymakers can utilise to enable future trade in services between the EU and the UK. “On exiting the EU, it is entirely possible
to use the tools and trust we have established during 40 years of membership to construct a new free-trade agreement that preserves some of the benefits of close alignment without sacrificing political and regulatory autonomy. “Traditionally services were not covered
in great detail within free-trade agreements, but there is every reason why, in an increasingly service-based global economy, an EU-UK agreement should include an ambitious and credible model for cross- border trade in financial services.”
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www.CCRMagazine.co.uk
December 2017
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