AFC UK Autumn Conference races towards sell out!

Lenders and intermediaries sign up to debate the impact of the intermediary fiduciary ruling

The Asset Finance Connect UK Autumn Conference has added a record number of delegates this Monday as lenders, brokers and dealers sign up to debate the future of the financial services industry as it contemplates the Court of Appeal’s broadside on intermediary introduced business.

This debate, which started by focussing on discretionary commission arrangements has expanded to consider the far wider implications of a judgement which found that brokers and dealers receiving commissions from lenders without full disclosure to their clients are in breach of their fiduciary duty. Lenders are liable as an accessory to the broker’s breach of fiduciary duty if they are aware of the fiduciary relationship and the commission payment and they do not take action. Lenders must ensure that the end-customer has been adequately informed .

Since the verdict, Asset Finance Connect has seen a rapid response from lenders, including a broadening of disclosure beyond simple commission disclosure. Indeed, some of the informed consent statements that AFC has seen contain wording advising the customer that the “broker is not acting in your interests”. Clearly this may well tick the informed consent box, but it is commercially rather unattractive and will leave many customers confused and possibly reluctant to proceed.

The conference will consider the court of appeal verdict, and assess the likelihood that it will be overturned in the Supreme Court. It will consider the timing of the hearing. It will consider lender reactions to the judgement, including the nature of the various disclosures lenders are asking for and whether simple commission disclosure is sufficient. And it will start to map out the various paths for different sorts of customer (sophisticated or not), different sorts of lender (advising on finance as the primary activity, or as secondary activity for example as a dealer), and for regulated versus unregulated transactions.

It will also consider whether disclosures are the best route to take. Are there alternative business models that offer a more friction-free customer journey?

Edward Peck, founder of Asset Finance Connect said “Lenders and brokers who wish to attend should act now to snap up the last few places. This is set to be an important opportunity for the industry to hear the views of industry leaders including Stephen Haddrill, director general of the FLA, and Jim Higginbotham, CEO of the NACFB; to consult with industry experts including Wayne Gibbard, partner at Shoosmiths, AFC’s legal advisors on the legal implications of the verdict; and to hear and contribute to the emerging debate among their peers on how best to respond . Everyone wants to know what to do first, what to do next and what the way forward longer term is likely to look like.

“As part of the community approach, we have asked our community members NACFB to invite leading brokers to attend as their guests; and AutoTrader to invite UK’s leading dealers. This is where the community approach to conferencing really starts to add value”

If you haven’t yet booked your ticket, you can do so now at https://afcconferenceuk.com/assetfinanceconnectautumn2024/en/page/book-now

But hurry! Tickets are limited and are being snapped up fast.