At a time of major change in both national politics and amongst the trade bodies representing the credit industry, it is essential that businesses have an association capable of fighting their corner in Westminster.  Hence, CCTA is raising its game and doing much more to engage politicians and opinion-formers on behalf of members during the new Parliament from 9 June.

CCTA has a long and illustrious history dating back to 1891.  Most of the other trade bodies representing different bits of the industry trace their origins back to the CCTA in some way or other.  One of our achievements down the years has been to keep the regulators honest, and to ensure that they have a clear understanding of how their rules and regulations impact on our businesses and the customers you serve.

In recent years, CCTA has been at the heart of the major regulatory change affecting the credit industry, namely the shift from OFT to FCA and the accompanying need to receive ‘authorisation’.  We have become trusted interlocutors of the FCA, FOS, ICO and others.  We don’t always see eye to eye with them, but we have their ear and we’re listened to.

Graham Haxton-Bernard and I will continue to beat a regular path down to Canary Wharf to keep the regulator at bay, but we are also adding an important new string to our bow, as well.

It is certainly true that our regulators have unprecedented powers to intervene in the market, but it is the politicians who set the climate of opinion in which the regulators operate, and ultimately government ministers who issue the instructions. These actors need man-marking as well.  Therefore, we are committing extra resource to ‘upping’ our lobbying efforts in order to influence thinking further upstream, before things reach the regulator.

This is important for a number of reasons.  For one, politicians who understand the benefits of deep and fluid credit markets will be less prone to knee-jerk responses, and less likely to have their chain pulled by debt campaigners with political agendas (usually to shut the credit industry down).  Secondly, they will understand the positive difference we make to consumers’ lives up and down the country: people who use our products to smooth lumpy payments and remain economically and socially active.  They might also grasp the contribution this makes to the UK economy.

But thirdly, and most importantly, our aim is to make sure the politicians understand the need for ‘proportionality’ and caution when regulating if they want to maintain a diverse and dynamic credit market with a mixed eco-system of large and small businesses serving particular consumer needs.  Big regulation works for big banks and finance houses; it crushes SMEs.

We will be taking the fight to the politicians in lots of ways.  We will be seeking out meetings with ministers and officials in the lead Whitehall departments.  We will be holding events and briefings in Parliament for MPs, Lords and committees that take a close interest in the industry.  We will be engaging money advisers and debt charities to make sure their representations are accurate and fair.

And we will be reporting our activities back to you in a number of new ways too.  Our primary reporting tool will be this Public Affairs Newsletter, which we will circulate to members on a weekly basis when Parliament is sitting.

We will also be sending immediate comment on developments to all stakeholders in industry, politics, media, etc, via our ‘100 Word’ emails, which are designed to catch the news cycle.  And we will be hosting and recording monthly podcasts with the main movers and shakers in business, the law, Westminster and Whitehall.

Our first podcast will be sent to you at the end of this week.  It will be an ‘Election Special’, featuring The Spectator’s Political Editor, James Forsyth, and former chief strategy adviser to both Tony Blair and Peter Mendelsohn, Patrick Diamond.  I will be asking James and Patrick what we can expect on 8 June, and what impact the result is likely to have on our businesses for the next 5 years.  Look out for our podcast email and enjoy what will be a fascinating and important discussion.

Lastly, you will find another two blog posts from last week in the new Public Affairs section of the CCTA website. The posts respond to the Labour and Conservative manifestos.  CCTA blogs and commentary will be published on the website regularly.  Be sure to keep up with these too.

Greg Stevens, Tuesday 30 May 2017