The draft proposal would see broker-based lenders forming a sub-group under the Finance and Leasing Association, who would then lobby players such as the Office of Fair Trading (OFT) and the Department of Trade and Industry.
The proposal comes as a recommendation from the first phase of the Finance Industry Standards Association’s (FISA) strategic review and has been largely welcomed.
John Webster, CEO of Swift, commented: “It’s a great idea. If lenders are speaking with one voice, instead of independently, then it can only be a good thing. It may only be a proposal but I see no reason why it wouldn’t be passed and I would want Swift to be part of it.”
As yet, the body’s structure and potential members have not yet been confirmed but the proposal has already received the backing of the Association of Finance Brokers (AFB).
Robert Sinclair, associate director of the AFB, said: “We agree on the need for change highlighted in the FISA review and support the creation of a secured loan trade body for lenders. We are very happy to co-operate with the new body and help shape the development of the secured loan industry.”
Bob Sturges, director of communications at Money Partners, said the move was further recognition of the continuing evolution of the secured loans market.
“As a lender ourselves, we welcome all forward-thinking initiatives designed to help promote the many positive aspects of secured loans. Since its inception in the 1980s, FISA has done a good job of helping the sector regulate itself. But the industry has moved on, and secured loans are now enjoying a higher profile than ever before. In light of this and the introduction of more effective statutory regulation, the time is right for FISA to consider the future.”
