The newly formed Association of Bridging Professionals (AOBP) has spoken out about its decision to allow both non FSA-regulated advisors and lenders to join.
In a statement released yesterday, AOBP said it hoped to be “inclusive and not exclusive” and were thereby inviting “either FSA-regulated intermediaries or CCL holding intermediaries to join.”
The association, which launched last week, raised some eyebrows after it announced that non-FSA regulated brokers could join for an annual fee of £20.
However, AOBP chairman and industry stalwart, Sidney Cohen, said yesterday that the association believed it wrong to categorise non-regulated brokers and packagers as non-professional.
“The AOBP does not seek to regulate its members or provide advice on compliance. Rather, it aims to provide a resource to members, both regulated and unregulated, which will provide them with key information and understanding of what is happening in the bridging industry – an industry which combines regulated and non regulated business,” Mr Cohen said.
When asked his thoughts about the organisation, B&C’s resident blogger and mortgage broker Bob Havenhand said: “I think the only membership allowed should be for acting finance brokers that are regulated with the FSA, or commercial brokers that use bridging but don't require FSA regulatory status.
“However they should still have data protection, CCL, and PI insurance.”
Commenting on AOBP’s decision, compliance expert Ray Cohen of the AOBP Executive Committee said: “Considering there are in excess of 60 lenders in the bridging market, and the vast majority of lending is on a non-regulated basis, such as development loans, buy to lets, commercial and second charge, it should be sufficient to ask for either an FSA licence or CCA licence”.
AOBP offers affiliate membership to solicitors, accountants and other professionals who are involved in bridging finance, as well an opportunity for lenders to become associates. The number of associates is currently six.
AOBP says it has allowed for lenders to join as associates, and solicitors to join as affiliates, because a unifying dialogue cannot occur otherwise. However, Bob believes the onus should be on support for the intermediaries and says: “I feel this should be for brokers only, but with lenders sitting behind, lenders giving information and backing to the brokers.
“I strongly feel that other professions like accountants, solicitors, valuers etc, shouldn't be granted membership unless they are actively involved in placing finance.”
AOBP argue that in order to unite the bridging community and enable “cross party” dialogue, lenders must be included in some manner and compare the associate membership to those who patronise the National Association of Commercial Finance Brokers (NACFB).
“AOBP is targeted primarily at the intermediary, packager and master broker community, all of whom can join as Associates. It also has Affiliates that work in bridging, including surveyors, solicitors and lenders. Just as the NACFB has lenders as Patrons, so too does AOBP have lenders as Affiliate Members.
Adam Tyler, chief executive of the NACFB said he welcomed the association and did believe there was room for another in the market.
“I think it’s a good idea that all bridging professionals, including solicitors and accountants, are involved as it’s an industry without regulation. If there’s a trade body overseeing that specific area they can give it more of a focus, but the NACFB must be part of it.”
Graham Allen, director of specialist packager Commercial Money Matters said he found the website confusing and admitted that, at this stage, it was unlikely he would join.
“If I don’t understand why am I going to join? If I don’t understand what’s being asked, how do I join? If it’s just another talking shop where I get to vote on some spurious angles, then what benefit do I have and what does that mean to me?”
Unconvinced over AOBP’s pledge to work closely with the Association of Short Term Lenders (ASTL), he said: “I don’t want it to be another committee that takes too long, ASTL look to me like a group of blokes that don’t do anything.
“I want AOBP to challenge them, not ‘work closely’ with them – the wording is obsequious!”
David Mant of 4U Commercial Mortgages recently registered the brokerage as a Silver Associate, and said he hoped AOBP would raise the bridging industry’s profile.
“By being part of the AOBP I hope to get recognition as a professional, because there are not enough people who know or understand bridging. It is a valuable tool for businesses and individuals.”
When questioned over Medianett’s links to the association, Mo Mulki, publisher of companies, Medianett and Bridging and Commercial said: “Medianett is a marketing company whereas Bridging and Commercial is a financial services title, they are separate entities and separate businesses. As far as the recent comments regarding AOBP not disclosing its links to Medianett, since when has any organisation had to disclose who builds their website?
“Yes Medianett has built the website and built the logo, that’s what we do as a marketing company. We also kindly accepted to put AOBP under our registered address. We have not tried to hide this fact which is why it states clearly on the AOBP website that Medianett built it.
“Bridging and Commercial will be working closely with AOBP, as it is the main bridging finance publisher in the market, and will welcome the chance to help promote AOBP in the future, as we see it as a positive step towards bringing the industry together.”
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