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Recent Activity & Publications
As most of our work is performed with a non-disclosure agreement it is generally impractical to produce case studies. As an alternative, here are a few items which give some idea of our views on the industry and the scope of our activities.
Preface to “Leasing Deconstructed”.Open or Close
Preface to “Leasing Deconstructed”.
A new book for all newcomers to the industry.
Welcome to the World of Leasing and Asset Finance; a World which is experiencing major change.
Since its modern beginnings in the United States in the mid nineteen fifties and its development across Europe and Asia in the sixties and seventies, banks have dominated the industry. Although their dominance persists, it is being challenged in many markets.
Many of the changes we are experiencing flow directly from the Global banking crisis and the resultant rethink concerning capital adequacy and the new banking guidelines for capital contained in Basel III. These pressures have caused many banks to re-consider the value of their leasing subsidiaries alongside other products, the cost of customer distribution channels and definitions of what type of customer profile they are seeking.
The scale of the banking distribution channel continues to be significant and leasing is being incorporated as a ‘lending’ product by many. Beyond the banks; amongst the new entrants and the expanding manufacturer owned captive financiers, there are many for whom leasing and asset finance are new, and a mainly untapped opportunity. Leasing and Asset Finance products offer a way to sustain investment & growth in the mature markets, but even more so in the emerging markets of Europe and Asia. An introduction to equipment leasing and asset finance should be helpful and useful for all these audiences.
In serving such a cross section of readers we have taken particular care not to include unnecessary complications in the book, or features which are relevant to only one or two geographic markets, or jurisdictions. The book is intended to be an accessible introduction, written in digestible chapters, for new, non-expert, entrants to the market.
I would like to thank all my colleagues in IAA-Advisory who spent time and effort in assembling and writing the content and in addition the editing and design of the book.
I wish you happy reading.
Chairman, IAA Advisory
Captives’ Forum review by Alan LeesmithOpen or Close
The Captives Forum, now entering its tenth year, continues to hold quarterly meetings for an increasing membership. It continues to be a European centric organisation, where the majority of attendees are responsible for their organisations activities across Europe, the Middle East and Africa.
It is a manufacturers’ trade association where the focus continues to be totally on the commercial challenges that manufacturers face in providing financial support for the provision of their products both to their end-user customers and their dealer/distributor networks.
It is unique in being the only association focused solely on this aspect of a manufacturer’s business and having no national boundaries for membership. It is run by people from the industry for the industry.
So far in its history it has not seen its role as a lobbyist, although it will certainly provide opinion on topics when asked. Its quarterly meetings are held in board room style and all members participate in the full day’s discussions.
Presentations are a mix of external presenters and members presenting on topics that members have chosen. The key benefit is that all presentations are interactive and all members take part in discussing the topics. Attendances are now regularly in the high twenties.
A new chairman
The start of the year saw the appointment of a new chairman. Taking over from Nils Jaeger, President at Volvo Financial Services EMEA, is Sven Jirgal, Global COO of Cisco Capital.
As has been the custom, and in keeping with the fact that the Captives Forum is an EMEA wide body, that its quarterly meetings move around Europe as different members take turns to host the meetings.
Financial Stability Board
We are from time to time consulted on major matters for the industry and one such request was in February, 2014, Alan Leesmith, secretary general of the Forum, was asked to appear before the Financial Stability Board (As announced in the G20 Leaders Summit of April 2009, the expanded FSF was re-established as the Financial Stability Board (FSB) with a broadened mandate to promote financial stability) to talk about and answer questions on leasing from the manufacturers perspective in the context of the FSB Consultative Document on Assessment Methodologies for Identifying Non-Bank Non Insurance G-SIFIs (Globally Systemically Important Financial Institutions).
This was a topic which members had debated over some time. Following that appearance, the Captives Forum submitted a comment letter to the FSB as had been requested by them.
Management of the Forum
The Forum is managed by reference to an Executive Committee; the current appointees are Sharon Butler of Ricoh - Europe, Sven Jirgal of Cisco Capital (Chairman), Nils Jaeger President at Volvo Financial Services EMEA, Erik Deweerdt from Agfa, Hans-Joachim Doerr, MD of TRUMPF Bank, Derek Soper, Chairman of IAA-Advisory,(Senior advisor to the board) and Alan Leesmith.
Supporting the parent
Recent meetings have discussed the support required by the parent companies of the Forum members: sessions have included discussions on Maximising Distribution through the Channel, led by the marketing director of Dell Financial Services, why companies choose certain models for Captive Finance led by Nils Jaeger, A Focus on Customer Satisfaction Monitoring and a presentation by head of marketing at MAN Financial Services on Supporting the Parent.
At a Forum meeting in Madrid being hosted by Cisco Capital, Jose Petisco, the GM for Cisco Spain, gave a fascinating and insightful presentation on The Changes to Business Driven by Technology. There was also an extended discussion on how members were making use of newer developments in systems capability. This was led by the director of global business development of Pitney Bowes Finance and the director business development EMEA & APJ for Dell Financial Systems.
These discussions again emphasised the difference between a finance operation in support of a manufacturer, which is controlled by the manufacturer, and an independent or bank finance business. The emphasis here was one in which the order and fulfilment of goods and services is the prime task, with “finance income and lease rules being regarded as complexity”.
Legal challenges to operating leases
Derek Soper, Chairman of IAA-Advisory talked about a research project on Redefining the Leasing Industry. There was a subsequent discussion on the Move to Developing Solutions rather than Leasing and Utility Consumption Models.
Joanne Davis of Locke Lord presented an update on some recent legal challenges to operating leases and how some of the latest Financial Conduct Authority statements could have an impact on future. That well know figure of the European leasing industry, Patrick Gouin of Société Générale Equipment Finance (pictured below), presented his view from the perspective of lessors generally and how they might be able to support manufacturers going forward.
Four members, from CAT, Fujitsu, IBM and Pitney Bowes, presented personal views on the future from a manufacturers’ perspective, leading to much discussion around the table. This really demonstrated just how much the industry is changing and the rapidity of pace. Providing services and solutions has already replaced leasing of equipment in many sectors.
Contact at the Captives Forum: Alan Leesmith email@example.com Tel: +44 1444 417688
Nick Gallop sees customer needs guiding innovationOpen or Close
Customer needs as a catalyst for innovation
Nick Gallop published a short paper for the the Leasing Foundation's Catalysts: innovation in leasing and asset finance series. In this paper, Customer inspired innovation, Nick argues that customers can tell you what to improve and help you prioritise... you only need to ask the question.
Derek Soper named 'Most Influential Industry Leader'Open or Close
Derek Soper named 'Most influential industry leader' at the China leasing summit.
Derek received his award as Most Influential Industry Leader in Beijing in June 2014. Derek discussed the Leasing Foundation's forthcoming study 'Redefining the Leasing Industry' in a programme that included Chinese Government presentations, a discussion of a People's “Supreme Court judgement defining leasing as a financial product and a presentation by the Chairman of the Beijing Leasing association on the maturing of the leasing industry in China. Derek said "Leasing's DNA includes many areas that are not considered to be, strictly, 'leasing' as it is defined currently. Technologies such as cloud computing, mobile devices, and renewables are all part of the future of the industry. There is increased activity amongst manufacturer driven captives who are developing products for multiple users, and new investors are entering the market. We must widen our mindset to embrace new products that share the same DNA."
Lindsay Town speculates on the low profile afforded to asset financeOpen or Close
Lindsay Town speculates on the low profile afforded to asset finance
Alan Leesmith reviews unsteady accounting standards progressOpen or Close
Unsteady progress toward a new lease accounting standard
Lease Accounting has been a controversial topic as the IASB and FASB try to reach agreement on a new lease standards. The task has been fraught with difficulties and caused much dissent among lessors, lessees, users of accounts, auditors and other interested parties. Alan Leesmith has recorded a series of webinars and podcasts to review the slow progress that the Boards have made during a period when they have issued two Exposure Drafts on the topic.
Find the latest podcast on the Asset Finance International website
IAA-Advisory named 'Emerging Markets firm of the year 2014'Open or Close
An award for IAA-Advisory
Finance Monthly recognises IAA-Advisory as its Emerging Markets firm of the year 2014
- Nick Gallop discusses approaches to innovationOpen or Close
Approaches to innovation in asset finance
Nick Gallop published a short paper for the the Leasing Foundation's Catalysts: innovation in leasing and asset finance series. In this paper, Necessity is the mother of innovation, Nick argues that there is untapped potential for innovation in financing by combining existing processes.
Derek Soper on where the asset finance industry is headedOpen or Close
Where is the asset finance industry headed?
Derek Soper is a regular contributor to the Leasing foundation's blog. Here you can find his perspective on the industry today, it's trajectory and challenges, as well as helpful articles to guide evaluation of financing proposal, and a 'Leasing 101' summary of finance offerings.
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