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Last year, the Financial Conduct Authority (FCA) announced the final ruling from its motor finance review, the ban on discretionary commission models and new requirements around commission disclosure.
Retailers were given only six months to adapt their business processes, policies and custom-er documentation to implement the necessary changes.
With the introduction of change naturally comes greater scrutiny. From September this year, the FCA will carry out point-of-sale mystery shopping exercises to measure lenders’ control over dealer networks and ensure compliance.
Our compliance monitoring team is working to ensure that all staff understand the rules, com-pleting regular compliance health checks to pick up and address any minor issues before the FCA’s reviews begin.
Retailers can make use of our recently launched online finance and insurance (F&I) training programme, ‘Funding Essential Skills’, to help ensure a solid understanding of finance products to deliver to customers in a compliant way. It is also a great refresher course for new employees or F&I sales specialists returning to work after furlough.
In the main, we’ve found that customers have embraced the changes and the transparency – they’re reassured that the rate they’re getting is the only one available and there’s no need for negotiation. Similarly, retailers have adapted their processes and ways of thinking.
We see these types of regulatory changes as a real opportunity for the industry to demon-strate that we are thinking and acting in the best interests of our customers.
Kirk Franks is head of national sales at ALPHERA Financial services