An Open Letter to the Commercial and Business Finance Community
Maxim Cohen, chief executive of UK Finance Group, calls on the commercial and business finance industry to hold itself to higher standards — arguing that “unregulated” must never mean “unprincipled.”
In an opinion piece published by Bridging & Commercial, Maxim Cohen — chief executive of UK Finance Group — addresses brokers, lenders and professionals across the commercial and business finance sector with a call for self-regulation and higher standards.
The argument in brief
Cohen, who began his career as an accountant before building an FCA-regulated mortgage brokerage, draws a clear distinction between “regulated” finance (overseen by the FCA with strict rules around advice, affordability and consumer protection) and the “unregulated” commercial lending space — which includes many bridging facilities, business loans and property investment lending.
His central message: “Unregulated should never mean unprincipled.” He observes that over the preceding twelve months he had seen too many cases of clients placed into inappropriate or unaffordable loans — bridging facilities with no viable exit, excessive fees, and deals structured to generate commission rather than serve the borrower’s interest.
A call for self-regulation
Cohen warns that if the industry does not raise its own standards, regulators will intervene — and that intervention could limit choice, slow down solutions and stifle innovation. His plea is for the community to treat customers fairly, carry out proper due diligence and ensure each deal works for the client.
The full article is available on Bridging & Commercial and is recommended reading for anyone operating in the commercial and business finance space.
Source: Bridging & Commercial
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