What does the ACT do for you?

Perhaps due to the stereotypical ‘British reserve’, or perhaps because our focus is around doing rather than talking about it, the ACT has recently been challenged for not talking enough about what it does on behalf of members, specifically in terms of influencing key stakeholders and decision-makers in the context of the COVID-19 crisis. In order to address the point, whilst not wanting to bore you with a long list of all the work our Policy & Technical team does in terms of advocacy and influence, I thought I’d focus on a few things we’ve been doing of which you may not be aware:

o   talking to HM Treasury and the Bank of England and giving a treasurer’s perspective on the COVID-19 impact on business and specifically cash flow and regulatory pressures; this included:

• praise for HMT and the Bank for their speedy actions in the face of COVID-19 ranging from the CBILS scheme, the CCFF and VAT deferrals to furloughing
• raising awareness that the largest companies are worried, as are we, about the ‘stranded middle’ of companies who do not currently have access to government support in terms of access to funding
• raising awareness of how supply chains work, and where and when we feel access to liquidity will become a critical issue
• request for clarity on CBILS including who is eligible and the issue of personal guarantees (addressed in part already)
• request to consider broadening the scope of the CCFF scheme and allowing non-investment grade companies to participate (rules already ‘relaxed’ in terms of what ‘investment grade’ means)
• raising awareness of the pressures LIBOR transition will bring in a scenario now where TMSs, once updated when we have full clarity on the calculations of the various market conventions established, will have to be upgraded by treasurers who won’t have the capacity to do this by the current deadlines

o    speaking to other bodies such as the CBI, City of London and UK Finance to ensure messages are reinforced through them

o    working with a group of treasurers to get a sense of trends in levels of liquidity in the economy (a ‘liquidity barometer’)

o    holding group calls with the banks and other stakeholders to brief them on the current issues treasurers are facing, so they can factor these in as they work to develop solutions that work for the whole market 

o    making sure the voice of the treasurer is heard by the media.

To do these things well, and ensure we are representing the treasury community appropriately, we are having conversations with many of you, and are very happy to hear from more of you, as that’s the only way we will remain relevant and continue to represent you in the best possible way in this fast-moving situation. Just give us a shout! 

Find all of our COVID-19 resources here.