As part of NACFB efforts to be more transparent before our Membership the Senior Management team have shared their insight and views on the enhancements and proposed changes to your NACFB.


NACFB Managing Director Norman Chambers discusses the benefits to becoming a Member of the Association:


NACFB CEO Graham Toy discusses the thinking behind the proposed Membership changes within the Association:


Compliance Services Managing Director Roger Deane discusses how NACFB meets its obligations for both training and education:


Graham Toy talks through the Association’s proposed internal governance restructuring plans:


Enhancing your NACFB Membership


We are planning a significant change in our approach to membership, with the aim of delivering more value.

The Board have continued to debate how best to support the Membership over the coming years from a regulatory perspective. From our meetings with the FCA and other trade bodies, we all know that regulation has only one direction of travel. Therefore, to continue to help you as Members, the Association launched a bespoke compliance arm in 2017 catering specifically for those operating in the commercial finance space.

We believe that this added security and support, at a very competitive price, will help you and your clients. We are here as your trusted trade body to keep you up-to-date with regulatory issues and provide technical support whenever it may be required.

We are proposing to amalgamate the three types of subscription that we offer. Instead of subscribing to NACFB Compliance Services Ltd, paying for MyNACFB and paying the membership fee, we are proposing that all Members receive all these benefits for one membership fee.

We are proposing a revised subscription for Members of £60 per month (£720 per annum). For Registered Individuals (RI’s) there is no increase, so membership remains at £210 per annum. This revised model of membership is VAT exempt and can be paid by direct debit either monthly or annually, streamlining the payments process.



We are also committing to freeze the membership rate of £720 for 2019. We will also be reducing the cost of our workshops to a level that covers our costs, for example the GDPR event is now £50 + VAT – down from £255 + VAT, delivering outstanding value for your business.

The new membership subscription will apply from your normal renewal date but the enhanced benefits package will commence on 1st January 2018. If you have already paid for NACFB Compliance Services, we will refund any fees you have paid in advance for 2018 compliance support. If you are paying monthly, we will cancel your direct debit to ensure no payments are taken for next year.


NACFB 2018 Group Budget


 We are aiming to deliver a financial plan that incorporates sensible expectations for Member and Patron volumes, and realistic predictions of our administration expenses. We are also seeking to deliver a surplus which should help deliver financial stability to the Association and enable it to continue to deliver greater support for Members.

Detailed below is the budget for 2018, for comparison purposes the current out-turn forecast for 2017 and the 2016 year-end results:

  Initial Budget 2018 (£) Latest forecast 2017 (£) Final Actual 20176 (£)
Patronage Income 644,503 638,278 587,133
Membership fees 561,623 490,748 364,737
Seminars & Sponsorship 10,000 11,500 48,816
Gala dinner Income & Sponsorship  238,650 238,650 193,041
Expo Income & Sponsorship 525,000 439,328 319,363
Sundry Income 0 0 13,050
NACFB Member Services Income 56,919 58,544 48,193
Compliance Services Income 34,200 106,160 44,240
  2,070,895 1,983,208 1,618,573
Gala dinner costs (164,000) (164,000) (130,755)
Expo Costs (254,989) (222,636) (197,095)
Administration Expenses (1,453,143) (1,397,430) (1,169,233)
  (1,872,132) (1,784,066) (1,497,083)
Operating Surplus 198,763 199,142 121,490
Other interest receivable and similar income 3,122 704 1,171
Surplus before taxation 201,885 199,846 122,661


The key assumptions adopted in this budget are:

  • The proposed changes to the membership subscription.
  • A phased 10% fall in Member numbers and a 5% fall in the volume of Patrons.
  • 3 additional full-time employees recruited on a phased basis.
  • Administration expenses include £36,000 for a possible change initiative focusing on our accounting processes and membership journey and £18,000 for a phased increase in the cost of MyNACFB licenses.


The result is a projected surplus for 2018 of £201,885. We believe that this is both practical and reasonable because:

  • We haven’t been over optimistic with income projections. In fact, if we are able to retain current levels of Members and Patrons, there is the potential to increase income by circa £56,000.
  • Administration expenses includes some provision for us to invest in the business and to absorb, as yet unknown, cost increases.
  • The most significant unknown is the increase in demand on the compliance team as Members start to use us rather than their current supplier. Whilst our expectation is that this will phase in over the year, we need to have some provision in place.


As a membership organisation our membership fees should ideally cover our costs. Budgeted administration costs for membership and compliance activity in 2018 are £1,453,143. After applying the membership fee increase, the Members will contribute just 34% of our running costs and projected surplus.

In making this observation the Association is not seeking to undermine the importance of our Patrons as key stakeholders of the organisation or in any way give the impression that their contribution is not valued. We must however ensure we are not too reliant on their financial support.

The CFE and Gala Dinner contribute 21%, with compliance and other income generating activities an additional 5%. In total 60%, meaning we are reliant on Patrons for 40% of our administration expenses and projected surplus. As a membership organisation it is prudent to make sure that we have a financial structure that makes us sustainable and fit for the future. Reducing our reliance on income from non-members must be taken into account. It is worth reflecting on the trend since 2010 when the source of income from membership and patronage were on a par. As you can see below we have steadily increased our reliance on Patron’s support.

The important financial contribution from the CFE and Gala dinner is also illustrated. In 2017 the forecast surplus from these operations is £291,342 which is a valuable contribution toward our administration expenses and surplus. These events also deliver an excellent example of how the Association delivers collaboration within our industry which is one of our key objectives.

At the end of 2017, our capital account will be in the region of £700,000. We have, for some time, adopted a guiding principle that we should hold sufficient capital to sustain the organisation for 6 months. Our budgeted administration expenses for 2018 excluding Member Services – e.g. CFE and Gala Dinner – are £1,453,143. 6 months costs are £726,571. In addition, there will be contracted costs within NACFB Member Services Ltd which we would be obliged to cover. We are therefore right on target with the value of capital that we are holding.


Changes to the governance of the NACFB


We are seeking to change the structure of the Board to bring in a broader range of skills and experience including non-members and Patrons, whilst implementing a governance structure to strengthen the strategic approach, oversight and operational effectiveness of the Association.

We hope that you have heard about these proposals from the magazine. If you have missed this, the key change is a revised Board structure of 12 Members comprising six broker Board Members, two co-optee Broker Board Members, two independents and two Patrons. This should provide a diversity of experience, knowledge and insight whilst ensuring that Broker Members will always be a majority. Provided below is an extract from the recent magazine article that explains our plans in more detail.


Introducing Board Member Remuneration


We are trying to address the succession planning required to protect the Association’s future and introduce a level of recompense that acknowledges Board Director’s contribution and accountability.

As the organisation has grown, so have the responsibilities of the Board. They perform a key role in setting the strategy and direction of travel for the Association. It is therefore important that there is a sound and robust succession plan in place to identify and secure new Board Members and then make sure that a training and development programme is in place so that they can progress through the Board structure and increasing levels of responsibility. As part of this process we need to make sure that Board Directors are appropriately rewarded. At present Operations Board Directors are paid £250 per day that they attend a board meeting plus expenses.

The proposal is that Board Directors will be paid a basic amount of £3,000 per annum. If a Director attends both Advisory Board and Operations Board, they will be paid separately for each Board position. Additional amounts will be paid for Directors who are appointed to positions of additional responsibility such as Chair and Vice-Chair.

This will not fully compensate Board Members for the time they have contributed or the time they have lost working in their own business. It is however a token and an indication of their value to the organisation. The proposed payments are made to the Director’s business rather than to them personally.




These are important changes for the Association, so we want to ensure that we share the thinking behind these recommendations with all our Members. We hope that the explanations and illustrations above provide some additional colour to the resolutions that are on the AGM agenda.