The asset based finance industry’s maiden year of self-regulation saw 78 complaints to the standards council set up in 2013, according to the industry trade association involved with establishing it.
The Professional Standards Council (PSC), established for the Asset Based Finance Association (ABFA) in 2013 to oversee a self-imposed regulatory framework, said 78 complaints were brought to the attention of the ABFA by members’ clients.
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Of the 78 reported, 65 were resolved by ABFA members own internal complaints process and 13 complaints were forwarded to appointed third party mediators Ombudsman Services for investigation and adjudication, of which six were upheld in favour of the complainant.
ABFA said it and its members, including UK and Irish high street banks, wanted to recognise the importance of independent mechanisms to be available for clients who believe that industry standards have not been held.
Lucy Armstrong, the independent Chair of the ABFA’s Professional Standards Council, said: "This is an evolving process, and the system will continue to develop; the PSC looks forward to continuing to work with the Membership and with stakeholders to deliver the right outcomes for clients and the industry."
ABFA Members currently provide £19.3 billion in funding to over 43,000 client businesses in the UK and Ireland.
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By GlobalDataIn 2013 the ABFA established the independent Professional Standards Council to oversee the newly established framework. The framework set out the standards that ABFA Members must meet through the ABFA Code and provides accessible mechanisms independent of the industry which are available where complainants believe that those standards have not been met.
The chief executive officer of the ABFA, Jeff Longhurst, stated that the association is ‘proud’ of the high levels of customer satisfaction in the industry.
"Establishing the Self-Regulatory framework has been a significant commitment for the Membership and it is one that will allow the industry to support even more businesses in future," he said.
