< p>The Association of Short Term Lenders (ASTL) has unveiled plans to improve standards in the bridging industry.

In order to push these measures through, the association has amended its Code of Conduct to encompass two new areas.

The first states that all members who do not offer regulated loans, and are not regulated by the Financial Conduct Authority (FCA), must declare this is on their websites.

The second requires all members to conform to Mortgage Conduct of Business (MCOB) inducement rules, which states that: “A firm must not operate a system of giving or offering inducements to a mortgage intermediary, or any other third party whereby the value of the inducement increases if the intermediary […] exceeds a target set for the amount of business referred.”

The ASTL said abiding by its Code of Conduct is a condition of membership and all its members had voted to accept the terms.

Benson Hersch, Chief Executive of the ASTL, said the trade body has always been at the forefront of responsible bridging lending: “We have raised standards significantly in the past few years, this is just one more move to raise these still further and instil confidence in everyone who works with a bridging lender that is a member [of] the ASTL.”

Brian West, Head of Sales for Central Bridging and a member of the ASTL executive committee, added that he was delighted that the association’s members had voted in favour of the recommendations.

“The resulting changes to the Code of Conduct really underpin the ASTL’s ongoing quest to promote best practice and raise standards in the bridging industry,” said Brian.

Meanwhile, Jonathan Sealey, CEO of Hope Capital and a fellow executive committee member, said the industry would benefit from the unanimous decision to increase transparency and raise standards.

“The ASTL is really leading the way in this and the respectability of the whole industry is rising as a result,” said Jonathan.

“It also shows that ASTL members are serious about the Code of Conduct - for everyone to agree to abide by the changes really sets a benchmark.”

Members who currently have inducement schemes in place have three months to end them and make the necessary changes to their websites.