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 alan.leesmith@captivesforum.org Tel: +44 1444 417688