09 October, 2008

It is calling to present thoughts on a several secured loans regulation, among the plans included in the paper is the option to stay under regulatory hold of the Office of Fair Trading and the Consumer Credit Act, or to concede all regulatory powers to the Financial Services Authority (FSA). The group stated that against the setting of the execution of the Europe-wide Consumer Credit Directive, it is inevitable that the regulatory landscape of the secured loans industry will undergo substantial transformation.

The AFB was developed to endorse the views of secured loans brokers operating in the UK and concentrate on lobbying delegates in the Treasury, the Office of Fair Trading, as well as the FSA, the government and EU policymakers. By doing so, it aims to endorse the interest of the industry in a useful way that bonds the watchdogs and lawmakers with the “front line” of the secured loans market.

Robert Sinclair, director of the AFB, supported intermediaries to perform in a positive way in order to make sure that new regulatory instruments will safeguard the interest of brokers, loan providers and the customer. He added that people should need to put at the heart of any new legislation governing the secured loans market.

"Customers and its groups probably move to FSA regulation in a positive manner. An enhanced perception of second-charge lending could lead to raised interest in products, and increased consciousness of the sector. Instant loans plays an important part in debt financing but it is essential to fairly deal with the customers and they should be protected very carefully. We have already been in talks with government and the regulators and they are keen for the industry to reach its own conclusions. If not, we will have that control taken from our hands," Mr Sinclair added.