UK asset finance brokers flock to Hitachi Capital’s compliance service

Hitachi Capital Business Finance has made a significant investment in a comprehensive compliance service to support the broker market. The new service, which launched today (May 27), is aimed at enabling brokers to meet new Financial Conduct Authority (FCA) requirements without causing a detrimental strain on their business.

With the small business sector vital to the UK economy’s return to growth – and with red tape cited as the biggest challenge holding back small firms – Hitachi Capital Business Finance has teamed up with a leading compliance firm to offer brokers a straightforward support package to ease the burden of authorization and give them an effective platform for achieving and retaining FCA compliance.

The launch comes at a time when it has been reported that small businesses are spending a combined £16.8bn a year dealing with regulation* and when the UK reportedly still ranks 89th out of 139 countries for having the largest regulatory burden on business*.

Broker reaction to the service Hitachi Capital Business Finance has invested in has been unprecedented. Following an initial engagement among 200 brokers, more than 80% have booked in for the free service. 

Mike Eaton, director of Paragon Finance, said: “It’s great to know that Hitachi Capital Business Finance truly does value its broker relationships, and is willing to back up what it says by funding this programme.

“For independent finance brokers like ourselves, the need to be FCA compliant is a major concern, and for a funder to step in and help to ensure that we achieve that is a wonderful gesture.”

Steve Moody, director of SKM Asset Finance added: “Smaller independent brokers are unlikely to be able to afford to employ a full-time compliance specialist, so free access to the services of a compliance consultancy is an enormous difference-maker for us.

“We’ve worked with Hitachi Capital Business Finance for many years, and thanks to this programme, we’re looking forward to continuing that relationship as a fully FCA-compliant broker.”

Gavin Wraith-Carter (pictured above), head of risk at Hitachi Capital Business Finance said: “After many years of broken trust in the big banks, the integrity of the broker sector depends heavily on everyone fully embracing the regulatory regime, particularly the need for a strong and disciplined market. The reality for many brokers, however, is the amount of time and money involved in getting authorised is a real challenge. For many, this could result in walking away from the market or not taking on regulated business.”

“We believe,” he added, “in the sector working to the highest professional standards and also recognise the vital choice that brokers bring to the market. Our decision to help the broker community through the FCA process is an investment in the future of the sector and we hope it sets an example others will choose to follow. 

“The National Association of Commercial Finance Brokers is also doing some great work in raising standards and awareness and we very much look forward to collaborating with them over the coming months.”
 
* Forum of Private Business (FPB), Daily Telegraph
** The World Economic Forum’s Global competitiveness report.