Nick Franklin, Head of Partnership & Distribution, MAPFRE ABRAXAS
Understanding and implementing the new FCA rules for GAP
With the FCA GAP regulations well publicised in advance of their 1st September implementation, many dealers had already developed compliant processes ahead of the deadline. This session provides examples of best practice in use across automotive retail. Understanding the key issues and how dealer colleagues have changed their procedures in order to comply will provide a benchmark for delegates whilst insights will highlight areas for consideration. As a leading provider of GAP insurance, dealers have been asking similar questions and requesting guidance from MAPFRE ABRAXAS upon which the content of this presentation will be drawn.
Emily Leigh-Dugmore, Compliance Manager, Citygate Automotive
One dealer group’s journey into the FCA era
Providing a window into one dealer group’s journey following the arrival of the FCA, Leigh-Dugmore provides a candid viewpoint of the evolving role of the compliance manager and some of the processes the group addressed to ensure compliance. Leigh-Dugmore has been responsible for the group’s compliance practices for the past 11 years and she explores a range of areas which she feels is essential in meeting the regulator’s demands including HR practices surrounding the recruitment and training of sales staff and the sales process they have felt were necessary to adopt. This session promises a rare insight into how one group has embraced the FCA era.
Adrian Dally, Head of Motor Finance, Finance and Leasing Association
Exploring key regulatory themes
Dally will explore the regulatory landscape since the Financial Conduct Authority (FCA) took responsibility for consumer credit last year. With the FCA purposefully not providing a ‘tick box’ approach to compliance, dealers are continually looking elsewhere for guidance and regulation interpretation. Among the regulatory themes Dally will address are the credit worthiness and affordability of consumers and remuneration and commission of sales executives and managers. Dally will draw on the FLA’s experience and will compare different approaches adopted by dealers and finance providers and explain the FLA’s interpretation of what constitutes compliance.
Spencer Halil, Director, ALPHERA Financial Service
From dealer to retailer - why we need to adopt a different approach to interacting with customers
Award-winning independent finance provider, ALPHERA Financial Services, shares its views on the motor finance landscape in a world of increasing competition and regulation. Working with a wide range of automotive retail groups in the UK, Alphera has developed nearly a decade of expertise in managing the relationship between captive and independent lenders. The company’s partnership approach is designed to ensure the consumer has access to specialist knowledge and a choice of relevant solutions, while making the life of the dealer as straightforward and streamlined as possible. The UK market has moved on significantly since the arrival of the FCA and Alphera is continually evolving the business model it launched following the new regulations. Halil will discuss how presenting a joined-up, transparent and flexible approach to finance can deliver benefits for everyone involved.
Russell Kelsall, partner, Squire Patton Boggs (UK) LLP
Challenges of working under the FCA regulations – a legal perspective
Dealers need to be aware of potential developments from the Financial Conduct Authority (FCA) and where applicable take action. In a sector which is typically reactive rather than proactive, Kelsall will urge dealers to consider a number of challenges when operating under the FCA, the possible consequences and solutions which could be considered. Challenges include a more intrusive relationship with captive and non-captive finance providers which are obligated under the rules to ensure dealers comply. In turn this could lead to the reduction in the number of financial suppliers with whom a dealer is prepared to work due to the administrative burden which will affect consumer choice and competition. Kelsall will also tackle the question of dealer and sales executive commission and disclosure to the customer as well as highlighting recent court action surrounding PPI claims which could have ramifications for the automotive sector.
What constitutes treating customers fairly?
Andrew Smith, Managing Director, Consumer Credit Advisory Services
Looking to provide some tangibility to the FCA’s ‘treating customers fairly’ or TCF, Smith explores in greater detail what this can actually mean in practice whilst incorporating the six TCF outcomes and how they relate in particular to three of the eleven FCA principles demanded by the regulator. How TCF manifests itself in the showroom is arguably different from one customer to another which can create confusion among the sales team and managers about how it can be delivered on a daily basis. However, Smith highlights a number of areas where TCF could well come under scrutiny such as PCPs sold or even promoted with low annual mileages which incorporate more attractive monthly payments but can store up problems when the vehicle is returned at the end of its term. Whilst the FCA’s ‘outcomes’ include providing customers with the information they need, this session also looks at the information dealers need to gather in order to assess ‘suitability’
How to motivate staff in a regulated landscape
John Sylvester, executive director, P&MM Motivation
Sales executives now find themselves in the arguably conflicting role of operating with a sales mentality when it comes to selling the actual vehicle and then undertaking a consultative role when presenting F&I. How can sales executives successfully navigate the two whilst remaining compliant and delivering profitability for the business? Meanwhile, the incentives and commission from F&I products will come under scrutiny from the FCA. On the one hand, some dealers are finding their F&I penetration is naturally increasing because sales executives have no choice but to present to every customer in order to meet FCA regulations, but on the other, how can dealers incentivise their sales staff? And, is it time to change the incentive structure itself so it is more fitting for a regulatory landscape? This session tackles the range of issues surrounding incentives as well as delivering ideas on how to evolve practices on the showroom floor which are more likely to be FCA friendly.