Under the spotlight: FCA focus on remuneration structures
A Q&A explaining what the FCA are doing on remuneration, what they expect to see and what they deem 'good' to look like.
Update on FCA activity
It is set to be another busy year for the regulator and the market, as several current thematic reviews are due to be finalised and consulted on.
The FCA’s work on creditworthiness and affordability will lead to a consultation in either Q2 or Q3 2016, the results of which could lead to new or redrafted rules and guidance, potentially affecting the point of sale process in dealerships.
New VED system to start in 2017
In July, the Chancellor announced new Vehicle Excise Duty (VED) rates, which will come into effect (for new cars only) on 1st April 2017. The scheme will introduce charges across the board for carbon dioxide emitting vehicles, therefore removing exemptions which are currently in place.
Update on FCA activity
We have already seen the introduction of new rules on the selling of GAP insurance from 1 September. The FLA will be working with the FCA and Retail Motor Industry Federation (RMIF) to monitor the effects of the new rules on the overall GAP market.
Update on SAF Advanced
There are now 135 industry professionals registered for the Level 3 course we launched earlier this year with the ifs. Three applicants have already passed and several others have set a date for their exam.
Enter the 2015 SAF competition and drive at Cranleigh with the Stig
We are keen to hear about the benefits SAF brings to you and your employer in day to day business and would like to hear your experiences – perhaps it has helped with customer retention or improved the confidence of sales staff
New rules for selling GAP insurance
The FCA recently confirmed that from 1 September 2015 a Guaranteed Asset Protection (GAP) contract can no longer be sold at the point of sale, and a list of prescribed information will need to be provided to customers at least two clear days before any sale can be concluded.
Over 80 businesses become SAF Approved for the first time
Since the start of the year, over 5,000 new users from 480 new companies have registered to take the SAF test – and 81 businesses have achieved SAF Approved status for the first time, meaning that all of their customer-facing staff have passed the test.
SAF Advanced qualification off to a flying start
On 1 June, we launched our new ‘SAF Advanced’ level 3 qualification to help motor finance professionals further their careers in the automotive sector.
FCA introduces new rules for credit broking
On 2nd January the FCA introduced new rules which ban credit brokers from charging fees to customers and from requesting customers’ payment details for that purpose. Only brokers that comply with new requirements providing clear information to the customer up front regarding who they are dealing with, what fee will be payable, and when and how the fee will be payable will be able to charge an upfront fee.