The astl answers: Banks can veto FLS request

Providing the opportunity for you to put your questions to the body representing the lenders in the short term finance sector, B&C has got together with the Association of Short Term Lenders (astl) to address any concerns or questions you may have.

Responding on behalf of the astl membership, the Association’s Chief Executive Benson Hersch will voice the view of the lender members – which currently stands at 22 - with the aim of promoting a better understanding of the issues currently affecting principal lenders and how you submit more effective finance applications

To submit your own questions to the astl, click here.

B&C: Following the announcement that the Government has opened up access to the Funding for Lending scheme to alternative lenders, how are you expecting astl members to benefit? And is there any advice you would offer them?

BH: I am sceptical about this as non-bank lenders cannot access the scheme directly, but any banks that lend to non-bank lenders will now be able to include such lending as eligible for inclusion in the FLS. However, there is no compulsion for banks to co-operate, so non-bank lenders can merely request that their bank applies under the FLS scheme on their behalf; if the bank chooses not to then there is little that can be done about it.

astl members who have bank funding may benefit, but this is dependent on the bank concerned and I wonder if any banks will assist. Members who are interested should consult their bank funders.

How are astl members finding life after almost a month under the new FCA regime? Have they raised any concerns or noted any improvements?

There have been no real differences so far. We are in consultation with the FCA about the interim arrangements for the transfer of CCA-regulated lending from the OFT to the FCA next year. Discussions are open and friendly, but major decisions are on hold until the finalisation of the new EU directive, which is expected in September or October. At this point we will have a better idea of how short term lending in the UK will be affected and what areas we need to influence on behalf of members. Major changes are not then expected to be implemented until late 2015.

In the interim, our members will of course be affected by the Mortgage Market Review, which will be brought in under the FCA next April, though that is an entirely separate subject.

At a recent trade event, a bridging lender stressed the importance of having as many short term lenders as possible come on board with the astl – in what ways would a larger membership benefit the industry moving forward?

The more lenders who subscribe to the astl’s Code of Conduct the better. This will raise standards across the short term lending industry and will also inspire confidence amongst brokers and consumers alike. More lenders operating according to high principles and to a code of conduct will also ensure that bridging is recognised as an important and legitimate funding tool in appropriate circumstances.

Another benefit of more members is that lenders which are part of the membership are able to make their views known and promote discussion, which is to the benefit of all.

A larger membership would make the astl more effective and enable it to obtain more benefits for members. More members fundamentally means that the astl has representative views from across the market, which in turn has a knock-on benefit for its members as they will have a stronger voice when negotiating with the regulator and other bodies that have an influence on our industry sector.