The Financial Conduct Authority (FCA) is the biggest change and also the most significant opportunity for the motor finance industry in more than 30 years.
With the FCA as a catalyst, we are encountering a once-in-a-generation opportunity to make a seismic change to the way in which the motor trade does business.
There will need to be a reflection on practices around commission, affordability, sales incentives and the general approach to treating customers fairly in order to ensure that dealers, brokers and lenders are compliant with the new regime.
Those businesses which emerge successfully from this period of transition will be the organisations which put customers at the heart of their decision-making.
The top five tips for FCA success
1. Don’t miss your landing slot!
The FCA has been quite clear: “Do not miss the application slot assigned, as your interim permission will immediately lapse and cannot be reinstated. The FCA has no scope to consider late applications and firms will be expected to cease trading until authorisation has been obtained.”
2. Start putting together the application now!
Early experience shows that that firms have found it more difficult and time consuming to complete their application than expected. Therefore, leave ample time to cover all of the requirements in sufficient detail.
3. The application is bigger than you think
The key areas to consider are the business plan, compliance manual, Treating Customers Fairly (TCF), the customer journey, conduct and business risks.
4. Be open and honest
Focus on your business and its daily objectives. If you say that you do something, then make sure you actually do it and have the evidence to prove it.
5. This is a cultural change
Change needs to be driven from the top down. While some elements of the application form might be outsourced, the cultural changes and ongoing responsibility lie firmly with the management of the motor retail business.
Our second artile titled 'How you can prepare for the FCA authorisation can be seen below please click on image to download:
Our third article is entitled putting the customer at the heart of the relationship please click the image below to view
Automotive Management Magazine and Alphera Webinar 9th October 2014 please click on the image below to watch the Webinar:
To view and download the Automotive Management / Alphera Webinar slides "FCA - Are you ready?" please click here