ITFA responds to UK PRA and FCA letter on trade finance

As we announced in our communication of 6^th October, ITFA responded  to the “Dear CEO “ letter sent out by the UK Regulators on 9^th September 2021 and asked for clarification on some of their guidance. A copy of the Regulator’s letter is here and our response is here.

The Regulators have now responded by email and have stated that factoring type activities, undertaken on a confidential basis where the end-buyer is not aware of the third party financing arrangements, are outside the scope of the transactions cited in their letter.

The Regulators have not yet responded to our request for clarification of their guidance on credit insurance policies and we are following this up with them.