LETTERS CCR
EU FACTORING UP BY 7.5% IN 2014
FINAL analysis of our data shows that factoring and commercial finance volumes in the European Union grew overall, in 2014, by almost 7.5%, to over €1.37tr. This higher rate of growth, compared
to the previous year, clearly outstrips the increase in GDP in Europe, as a whole, and demonstrates the vital role factoring and commercial finance is playing in developing the real economy, providing principally SME businesses with much-needed working capital. This success story is about real growth,
real employment and demonstrable business success in supporting the recovery. More than 160,000 businesses are now benefiting from combined funding in excess of €170bn. With factoring and commercial finance
now representing around 10% of European Union GDP, this is a powerful and important contribution to our economic development and success. Once again, we have seen the growth
of the industry’s turnover demonstrating a strong signal of the importance and value of this type of funding.
FCA: NEW CCDS RULES
WE were pleased, last month, to see publication of the Financial Conduct Authority’s (FCA) final rules covering the restrictions on the retail distribution of regulatory capital instruments. For our members, this primarily covers the issuance of Core Capital Deferred Shares (CCDS) to retail investors. The rules came into force on 1 July 2015. We agree with the FCA that retail
capital instruments such as CCDSs should only be sold to those investors who can understand the risk, and as a modest part of a portfolio – the rules specify a maximum of 10% of net investable assets. Societies will go the extra mile in
We, in the industry, are delighted to
see this successful contribution to economic growth and recovery. We look forward to continued contribution to building financial strength, as more and more people become aware of the real benefits that this funding provides.
John Gielen, chairman, the EU Federation for the Factoring and Commercial Finance Industry
HIGH PRODUCTIVITY FOR ASSET FINANCE
NEW research, launched last month, shows that productivity among our members providing asset finance (leasing and hire purchase) is almost seven times higher than the national average. The research carried out by Oxford
Economics measures members’ contribution to the UK economy in 2014. The level of productivity for the asset-finance industry, measured in terms of output per worker, puts it in the top 2% of all UK industries. In 2014, asset-finance members
provided £26bn of new finance, primarily through leasing and hire purchase, to
50
support investment in all kinds of equipment by UK businesses. This represented almost 28% of all UK investment in machinery, equipment and purchased software. About 60% of asset finance new business went to small and medium-sized enterprises last year. Leasing and hire purchase can make
the difference between firms getting the equipment they need to thrive, or being left behind. Asset finance should be part of the conversation any business-owner has when thinking about investment.
Simon Goldie, head of asset finance, the Finance and Leasing Association
www.CCRMagazine.co.uk
observing the highest standards in this area, to protect both their own members and themselves. CCDSs are totally different to a savings account, and although the return may be higher, this matches the higher level of risk undertaken. We are glad to see these final rules
set and congratulate the FCA on seeing through a sound, evidence-based piece of policy work. Any society that wishes to issue CCDSs now has the regulatory certainty on which to take forward its plans. I do not expect to see a queue forming
to issue these instruments immediately, however this is a crucial addition to the capital tool-kit for customer-owned organisations like building societies. These final rules strike a good balance
between investor protection and opening up a legitimate market. They should ensure that any individual buying CCDSs is crystal clear about what they are buying. The investment restrictions mean that they can never be over exposed to this asset class. The rules are a logical extension to the inclusion of this asset as ISA-eligible by the chancellor last year.
Robin Fieth, chief executive, the Building Societies Association
SEND YOUR LETTERS TO THE EDITOR, STEPHEN KIELY, TO
STEPHEN@CCRMAGAZINE.CO.UK
July 2015
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52