A resolution, motioned by Adam Tyler, chief executive at NACFB, proposed that members without a CCL could still belong to the association, so long as they don’t participate in CCA transactions.
However the consensus amongst members was that all associates should have a consumer credit license, in order to comply with new FCA requirements.
All audience members voted against the resolution in a straw poll, despite 4% of members not holding a license currently.
Tyler stated that the NACFB believes that having a license is important for members, but accepted that some may find it unnecessary if they don’t participate in regulated underwriting.
But several members of the audience strongly argued that having a license should be a compulsory requirement, with one saying “Even if the 4% of members don’t hold a license because it is unnecessary for their line of trade, it is important that they get on board.
“The NACFB needs to be firm on this requirement, and show strong leadership and robustness on the issue- it should be compulsory and not the opt-in, opt-out option currently being proposed.”
Suzanna Walker, compliance director at Bridgebank Capital, said: “The FCA now expects all brokers to have a credit consumer license, regardless of whether or not they currently engage in CCA transactions.
“Under the new consumer credit requirements certain brokers’ transactions may be exempt from regulation, but that does not mean that they will not engage in CCA transactions in the future.
“The FCA believes that all brokers have the potential to engage in these transactions and should therefore hold a license.”
In response to the failed resolution, Tyler said that the NACFB is not currently prepared to exclude non-licensed members.
However he said that he would consult with the board and come up with a new solution at the next meeting.
The revote will take place on 5 November at the next AGM meeting.
