Finance & Leasing Association’s lobbying prowess heralded at sell-out Annual Dinner

In his second and final year as chairman of the UK Finance & Leasing Association (FLA), Philip Ross, senior vice president sales at Honda Motor Europe, shared a few thoughts from his time in office with delegates at the 2014 FLA Annual Dinner held in London last evening.

Addressing a sell-out event, Ross argued that the purpose of a trade association like the FLA has never been better illustrated than during the last couple of years when, in response to FLA lobbying, the UK government:

• included asset finance in its credit-easing schemes;
• extended the Bank of England’s Funding for Lending scheme to cover more banks and allow them to lend to non-banks;
• opened the Regional Growth Fund to a wider range of FLA members;
• via the new Business Bank – the government set up two new schemes aimed at non-banks in the asset finance market – one of which could fund up to £400m of investment.

“Now,” he stressed, “that’s what I call making an impact. “

Ross further argued that the FLA’s effectiveness as an organization depends crucially on the commitment of its members, and “that is exactly what we’ve seen over the last couple of years”.

Avoiding unintended consequences

“It is only a matter of days now,” he added, “before the Financial Conduct Authority (FCA) publishes its consumer credit rulebook, the effects of which will be felt in all three of our markets – asset, consumer and motor finance.

“But in an effort to avoid unintended consequences for businesses and their customers, the FLA has continually canvassed members as successive versions of the regime emerged.”

“Your input,” he told members, “has made it possible for the FLA to help the government and regulator try to ensure that the new regime is as well-tailored as possible to the realities of the credit markets – realities which of course are very new to the FCA.

“If I had to sum up the tone of the FLA’s response to the government’s proposals in one word – it would be pragmatic.

“We have not opposed change itself, but we have explained in detail what would work and what would not.  Because we know it’s in everyone’s interests to ensure our customers are treated fairly, that our industry remains competitive, and that the supply of responsibly-provided credit to customers and small businesses is maintained.

“And of course it’s not just in our interests.”  

“The position of chairman of the FLA,” Ross said, “has given me a real appreciation of how important all three of our markets are to the wider economy.

“Overall, FLA members provided almost £85bn of new finance to businesses and consumers in 2013.

“In the motor finance market which I know best, FLA members provided £28bn of new finance last year and funded almost three quarters of all UK private new car sales. 

Value & flexibility

“Customers are demanding value and flexibility in their finance agreements and that’s what we’re delivering – competitive deals with affordability demonstrated in historically low arrears figures. 

“And in 2013 the FLA’s asset finance members provided £22bn of finance to large, small and medium sized enterprises and the public sector – around 29% of all fixed capital investment in the UK last year – which helped around 1,000 small firms every day to secure the investment they needed.

Nigel Clibbens

Strong performances in all divisions 

Figures to be released next week show that FLA markets have started 2014 as they ended last year with strong performances across all three divisions.  In January 2014, asset finance and consumer finance new business grew by 9% and 19% respectively.  Consumer new and used car finance volumes grew at similar rates, up 24% and 25% respectively.

In concluding, Ross offered his best wishes to Nigel Clibbens from Lombard who, subject to the next AGM, will be the FLA’s new chairman.

Clibbens, an accountant who qualified with KPMG, joined NatWest in 1991 to set up an internal audit unit. In 1994 he moved to Lombard to become head of internal audit which he did for two years before moving to Rover Finance as finance & risk director.

When Rover Finance was closed Lombard took over the contract hire division which is now Lombard Vehicle Management as the finance and risk director for Lombard. In 2001 he became a Lombard main board director and is currently Lombard’s chief operating officer.