FCA

FCA intervention in bridging sector unnecessary if trade associations promote effective self-regulation




If trade associations can promote effective regulation, further FCA intervention in the bridging sector could be deemed unnecessary, according to former FCA mortgage manager Lynda Blackwell.

Lynda — who spoke at the Association of Short Term Lenders (ASTL) annual conference last week — stated that she didn’t think full regulation of the bridging sector would happen any time soon and added that it was down to the bridging market to “react in the right way”.

She also highlighted that trade associations, such as the ASTL, had a responsibility to call out bad practice, which would provide evidence that the market was able to self-regulate.

Benson Hersch, CEO at the ASTL, said: “Regulation of our market may not be on the imminent horizon, but we all need to be cognisant that it is always a possibility and that any regulation will be targeted at the worst offenders, so could be heavy-handed and restrictive to customer choice and innovation.

“Lynda highlighted the important role that trade associations play in maintaining standards, calling out bad practice and ensuring we can build a sustainable market that benefits both our customers and our participants.

“This doesn’t happen on its own and we all need to pull together to ensure that lenders lend responsibly, following the rules of the market in which we want to operate, rather than have those rules imposed on us.”

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