The majority of UK brokers believe the coming regulatory changes to the UK market from the Financial Conduct Authority (FCA) will make little difference to their business, according to a survey from United Trust Bank (UTB).
Of the 119 brokers surveyed, 96% said the changes would have no change or just a slight change to their business levels. 56% responded that the slight change would just mean more paperwork.
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Rule changes for brokers under the FCA regulation will include a ?step-up in reporting and permissions for any non-commercial lending activity.
The survey found nearly 60% of brokers expected to see more lenders enter the asset finance sector whilst 20% predicted some lenders would fail or withdraw from the market.
Nearly 70% of brokers operating in the asset finance sector had a positive outlook for the future, expecting the market to expand over the next three years. Just 6% thought the market would contract and the remaining respondents expected the market to stay about the same.
Martin Nixon, head of asset finance at UTB, said;? "It is good news that the vast majority of brokers appear to have resolved any initial apprehension they may have had over the new FCA regulations and are now pushing their businesses forward within the new framework."
"The last two years has seen a lot of new funders start up or return to the sector. Whether this trend continues, or whether there may be some consolidation at some point in the medium term will be of great interest to brokers."
"In our experience SMEs are continuing to employ asset finance for a wide range of uses because it can be arranged quickly and lenders such as UTB are able to demonstrate a flexible approach to putting together a deal which suits the customer, the broker and the bank."
