Commission Disclosure

In January 2021, the FCA strengthened their stance on the disclosure of commissions. Disclosing the existence and nature of commission arrangements is now a requirement for all financial transactions and must happen in good time before the customer enters into a credit agreement or consumer hire agreement. Refer to CONC rules 4.5.3 and 4.5.4 if you wish to learn more.

• The wording on our printed quote, as well as our Explanation Document clearly outlines that we will pay you a fixed commission for introducing your customers to us.
• Training is available on when you should make the disclosure and how you need to go about it. Please refer to content on the HUB for more details.

• Emphasise the existence and nature of commission as part of your normal sales process. This will not only mean you are following the regulations, but it will improve a customer's understanding and increase their trust in us.
• Print or email the quote document from FAMOS and encourage the customer to read it thoroughly. It's best to do this as early on in the process as possible to give the customer as much time as possible to consider the details.
• Keep a written record of your sales process so you are able to prove your compliance with the commission disclosure rules and other pre-contractual requirements.
• Have controls in place to monitor your compliance with pre-contractual disclosure obligations.
• If you do not follow these rules you will be in breach of FCA rules and the FCA or a Claims Management Company (CMC) may take action against you.

• The FCA will undertake their own mystery shopping exercises to audit retailer processes and may take enforcement action if you do not comply.

• The Case for Full Commission Disclosure (Automotive Management Online) - https://www.am-online.com/dealer-management/finance-and-insurance/the-case-for-full-commission-disclosure