Almost a third of car dealers unaware of the looming FCA changes to commission coming into drive
Almost a third (32%) of car dealers are unaware of the new FCA rules coming into play in the New Year, according to new research by Close Brothers Motor Finance. The study, which asked dealers how aware they are of the forthcoming changes, found that while two in three (69%) have heard of the new rules, just a third (33%) have read the FCA paper.
The FCA consultation paper, published in October 2019, set out ways to keep the industry fair and safe and improve outcomes for customers. Following industry consultation, a Policy Statement set out new rules including; clarifying commission disclosure rules to increase transparency for customers, and banning pricing models linked to commission. The new rules must be implemented by 28 January 2021.
To support dealers in understanding and adapting to the new rules, Close Brother Motor Finance has launched several initiatives. For dealerships across the country, and which remain open, they can benefit from face to face support and training with their local account manager. Dealers who face Covid-19 lockdown measures will be supported when their showrooms are back open, while also receiving virtual guidance where possible. The business is also providing written guidance, including tips and guides to help dealers navigate through the changes. Dealers can find out more at https://www.closemotorfinance.co.uk/fca-changes.
Seán Kemple, Managing Director at Close Brothers Motor Finance commented: “The new FCA changes may seem like a long way off, but it’s important we do all that we can to support our dealers in the run up to new regulation being enforced. They need to understand the rules and be well prepared to make changes where needed, as soon as possible.
“It’s been a tough year for dealers with the closure of showrooms during the national, and now regional, lockdowns. Combined with economic uncertainly and Brexit, this may feel like an additional challenge at what is already a difficult time. But, we’re here to support our dealers and help them understand what the changes mean for their business and customers.”