Montello seeks 'additional stamp of approval'

Montello seeks 'additional stamp of approval'


Montello Bridging Finance is set to apply for FSA regulation next month.

The bridging financer is planning to apply for full authorisation from the FSA next month.

The company hopes that the ‘additional stamp of approval’ will give added confidence to current and future investors.

Despite most of the bridging lending industry being unregulated, Montello, who has spent three months planning for the change, believes it will be extremely beneficial.

We spoke to managing director Christian Faes, who told us seeking regulation was a large step for the company.

He said: “We decided to go for FSA authorisation because we believe we adhere to the best market practice in the industry. We thought it was appropriate for us to take the additional step of getting FSA authorisation. With the change to the regulatory landscape, we thought it would be useful to have.

“The other side of it for us is we fund our loan book through our Montello income fund, so it is an additional thing to give investors comfort - to ensure that we do invest in the best market practices.”

Montello hopes to have FSA approval by early next year, but doesn’t plan to make first charge lending a huge part of its business.

“I don’t think regulated lending space is one we particularly want to get too involved in, but if we can have FSA authorisation it gives us the flexibility that if we do see particularly credit-worthy deals we can then do them – but we don’t see it as a huge part of our business,” Christian Faes explained.

Whilst Montello does expect to see more business coming its way, the company has stressed that this isn’t the motivation behind seeking regulation.

“We anticipate we will get more deals this way. We don’t anticipate there will be a completely significant increase, we are doing this more for our reputation than anything,” Christian Faes added.

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