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FLA Lending Code changes aim to raise professional standards

FLA Lending Code changes aim to raise professional standards

Today the Finance & Leasing Association (FLA) has agreed a new provision within its Lending Code that aims to raise professional standards.

What is the Lending Code?

The FLA Lending Code is covered under the SAF Expert training material here.  It sets out best practice for the consumer finance industry and any changes to it must be agreed and adhered to by all FLA members that provide regulated finance products as a condition of FLA membership.   The Code is written to be read by consumers and outlines standards that they should expect lenders to meet when forming a finance agreement. 

New requirements impacting on motor retailers and brokers

The newly agreed provisions were approved at an Annual General Meeting of the FLA which aim to further raise industry standards.  Of key importance to SAF users is a requirement for FLA members to only arrange finance with SAF Approved motor retailers and brokers or require that intermediaries have undertaken equivalent training.  The requirement comes into effect from 1 January 2023 for franchised retailers and brokers and 1 January 2025 for independent retailers.  

The provision will not affect those firms that are already SAF Approved and maintain certification but it will require those that are not to gain the certification, or find an alternative that ensures their staff receive equivalent knowledge based motor finance training.

The FLA, along with its members, will be exploring new approaches for delivering SAF Expert learning to assist users and developing policy that clarifies the requirements for lenders and intermediaries.  Further information will be issued to SAF users in due course.