Funding volatility is reshaping lending
UK lender funding models are going through significant structural change, as investor and regulatory scrutiny on loan book performance increases. The emerging position is that lenders who can demonstrate portfolio resilience and regulatory alignment are accessing new facilities at competitive rates but those who can’t are already losing ground. The future is clear; lenders who invest in robust independent oversight are the ones securing funds at competitive rates which, in turn, is driving their competitive growth.
Lines of defence back in the spotlight
Regulator fines have featured regularly in our think-pieces ever since our formation in 2008. Over the years the amounts in various sanctions have been eye-watering. We have also spoken over the years about the business cost of non-compliance; not just the fines but also the wider cost of remediation and reputational damage. Despite this, fines have become a regular headline in our industry, with some stating “fines are just a cost of doing business”. We cannot subscribe to that view.
Consolidation is back on the agenda
Last month 10 of the Rockstead team, along with approximately 5,000 delegates, attended Global ABS in Barcelona. For over a decade Rockstead has supported this event and without doubt, this was the biggest ABS event so far. There was a significant buzz of energy and enthusiasm, despite the backdrop of increasing geopolitical volatility which continues today.
Global ABS Barcelona – let’s continue the conversation
We were delighted to attend Global ABS Barcelona 2025 – a fantastic opportunity to connect with the market and discuss the challenges and opportunities facing our industry.
We are heading back to Global ABS – let’s meet up!
We’re thrilled to announce that Rockstead will be returning to Global ABS in Barcelona this June—and this time, we’re bringing 10 of our finest team members to make sure we catch up with as many of you as possible!
Have regulators started to tear down barriers?
It’s nearly 6 months since the Chancellor challenged key regulators to ‘tear down the regulatory barriers’ that hold back economic growth. This week however, both the PRA and FCA used the recent BSA conference to announce major reforms. It is becoming clear there is a regulatory will to satisfy Government demands, but will the loosening of controls see a return to the slack standards seen before the global financial crisis?
Transitional Risk and EPCs
Even though it is a reasonably recent category, transitional risk is going to be a significant issue for lenders, servicers or holders of buy to let mortgage assets.
Horizon scanning for risk managers
Regulators often remind firms that they are expected to learn from all their outputs, so risk manager horizon scanning should not be limited to regulator rules and updates. Their scanning should encompass, for example, consultation papers, speeches, press releases and portfolio letters. It should also consider portfolio letters addressed to other regulated sectors.
Managing risks in a light touch world
We have seen several market cycles and in most cases regulation and regulators are seen as followers, tightening regulation after an event – ‘after the horse has bolted’ if you like. This was certainly the case after the Global Financial Crash (GFC) of 2008/9, which led to expansion and significant tightening of regulation within the financial sector. However, we are now witnessing a substantial swing in the regulatory pendulum leading to some CROs fearing a new ’race to the bottom’.
The FCA continues to drive for consumer protection
The FCA final guidance (FG24/2) has just come into force, replacing and building on the earlier Covid Tailored Support Guidance, and further protecting the ongoing needs of borrowers in financial difficulty.
