ABFA Code of Conduct

The long awaited code of conduct from the ABFA has been announced and this will be coupled with an independent system of dispute resolution managed by Ombudsman Services.

Further good news is that the ABFA is also establishing a Professional Standards Council which will be mainly comprised of members outside of the industry, and they will consider issues emerging from the complaints system and make recommendations on actions to further repair and enhance the reputation of the industry.

In theory this is good news but it does depend on the will of the ABFA and it’s members to clean up their acts.

One interesting point in the code is that all factoring companies will be required to include a note in their Agreements saying that a commission will be payable to the introducer which I’m sure won’t cause any heartache but the next clause insisting that each factoring company shall provide full details in writing of the amounts involved and the method of calculation of any future commissions if requested, might cause issues for some of the larger broking outfits who insist on commissions way above the levels that are deemed to be the norm within the industry.