FP Show 2014: Experts clash over the effect of regulation on brokers
By Chanice HenryThe final seminar at the FP Show saw cracks appear in the consensus of the debate panel. The discussion circled predictions of a drop in the broker population following legislation changes
The final seminar at the FP Show saw cracks appear in the consensus of the debate panel. The discussion circled predictions of a drop in the broker population following legislation changes.
The debate panel which contemplated the future of commercial finance brokers consisted of Wesley Harfield of Investec, Brian Dhenin of Close Brothers, Allan Ross of First Independent Finance, Paul Mildenstein of Liberis, Michael Nicholls of IFS and Chair, Andy Bishop of Lloyds Bank.
With Michael Nicholls sitting on the fence, Wesley and Brian both felt that a drop in the number of brokers as a result of legislation changes was a likely outcome.
However, after Allan switched the flow of the discussion by disagreeing with the other members, both Paul and the debate Chair followed his opinion, maintaining that a drop in brokers was not in fact a certainty.
Similar to Andy, Paul Mildenstein of Liberis noted that a broker’s survival to the changes was linked to their outlook. He said in regards to the changes a broker can either consider them as an opportunity for success “…or you can kind of wither and die.”
Allan noted that previous changes to the Consumer Credit Act saw some brokers panic about the influence the shift would have on the market and consequently left the industry. He added that brokers can’t blame the regulator for everything.
On the point of what the industry can do to improve its position, optimising both understanding and trust between brokers and their clients was seen of prime importance.
The Q&A section of the seminar saw discussions arise surrounding the new blood of the market’s workforce.
Allan stated that with the recent focus on corporate exit strategies he has noticed, recruiting young employees could be the best solution. He stated that sometimes the industry is just too preoccupied with ‘the next deal’.
Keywords: FP Show, IFS, lloyds, Alternative Finance, Lenders, Liberis, Paul Mildenstein, Allan Ross, Andy Bishop, Wesley Harfield, finance professional show, seminar