Treliant’s Post

Friday’s 'Dear CEO Letter' from the Financial Conduct Authority (12th April 2024), has placed new demands on UK motor finance firms to maintain adequate financial resources and manage discretionary commission arrangements (or DCAs) effectively. This key communication highlights the need for stringent compliance and redress.   At Alba Partners, we're geared to support impacted firms to mobilise and address the challenges. Our expertise in regulatory compliance and programme management makes us the ideal partner in this evolving landscape. We understand the intricacies of the FCA's requirements and are already assisting firms in implementing robust solutions that not only meet but exceed expectations. Please make sure to reach out to alex.margiotta@albapartners.co.uk and charles.churchill@albapartners.co.uk to understand more about the developing situation. At Alba Partners, we prepare our analysis to respond to key industry announcements to ensure our clients act promptly. #DearCEOLetter #DearCEO #DCA #MotorFinance #FCA #FOS #PartnersinChange #Consulting Auto Retail Network, Financial Times, Financial Ombudsman Service

🚨🚨🚨 BREAKING NEWS: Major FCA intervention in the motor finance market Today's publication from Financial Conduct Authority to the motor finance sector is significant. Firms who historically operated a discretionary commission model need to prepare for significant regulatory intervention and the rest need to get on the front foot of commission disclosure and embedding consumer duty. Our latest blog includes a helpful action list of what we think Firms should be doing in response to the publication. As always we would be happy to discuss any of the matters raised below with Firms who need support. Click below for more. #motorfinance https://lnkd.in/ec2NSVMN

Some practical tips from Justin here

An #FCA review into historical motor finance discretionary commission arrangements could trigger a significant increase in customer complaints for firms, with the potential for an industry-wide consumer redress scheme. Chris Laverty and Jarred Erceg at Grant Thornton UK LLP draw comparisons with the high-cost short-term credit sector to help motor finance firms prepare ahead, and look at practical advice when considering a remediation exercise. https://lnkd.in/eNEXj9eS

Financial Conduct Authority (FCA) delays review of motor finance commission.   The FCA has postponed its announcement of the outcome of its review into potential overcharging of customers due to discretionary commission arrangements (DCAs) until May 2025. A redress scheme is now seems more likely, with a consultation paper expected in Spring next year.   Read the full blog by Jill Lorimer for more details and insights on what this could mean for the industry: https://lnkd.in/eiZhUQqX   #FinanceIndustry #AutoIndustry #ConsumerProtection #RegulatoryNews

Motor finance complaints are a looming concern for the Financial sector, leaving many to ask how another scandal has emerged. Didn't we learn from the monumental PPI costs of the 2000s? Instead, the sector faces a new problem worth up to ~£16bn, according to early estimates, with over 1m people already using MSE's tool to lodge a complaint about discretionary commercial arrangements (DCAs). When the FCA's pause on DCA complaints ends in September, organisations are set to face a huge inflow of demand, potentially impacting operating cost, reputation, and share prices - all alongside the risk of fines. So how should they prepare? Tom Deen explores this in our latest blog, looking at: 🔎 Due diligence - proactively determining which customers will be affected, with readily available data 📈 Standalone process optimisation - prioritising streamlined inputs, minimal waste, individual risks and controls, bespoke automation, and a clear strategy 💡 Building the taskforce - is there capacity in the wider business to upskill employees, creating a short-term taskforce for DCA complaints? Click the image below to read more. #FinancialServices #Complaints

An #FCA review into historical motor finance discretionary commission arrangements could trigger a significant increase in customer complaints for firms, with the potential for an industry-wide consumer redress scheme. Chris Laverty and Jarred Erceg at Grant Thornton UK LLP draw comparisons with the high-cost short-term credit sector to help motor finance firms prepare ahead, and look at practical advice when considering a remediation exercise. https://lnkd.in/eKvm4dvT

An #fca review into historical motor finance discretionary commission arrangements could trigger a significant increase in customer complaints for firms, with the potential for an industry-wide consumer redress scheme. Chris Laverty and Jarred Erceg at Grant Thornton UK LLP draw comparisons with the high-cost short-term credit sector to help motor finance firms prepare ahead, and look at practical advice when considering a remediation exercise. https://lnkd.in/eDsHsCMN

The #FCA review into historical motor finance discretionary commission arrangements could trigger a significant increase in customer complaints for firms, with the potential for an industry-wide consumer redress scheme. Chris Laverty and Jarred Erceg at Grant Thornton UK LLP draw comparisons with the high-cost short-term credit sector to help motor finance firms prepare ahead, and look at practical advice when considering a remediation exercise. https://lnkd.in/esdBNeNm

Following a large number of complaints from motor finance customers in relation to discretionary commission arrangements entered into before the FCA's 2021 ban was introduced, the FCA has announced that it is using its powers under section 166 of the Financial Services and Markets Act 2000 to review historical motor finance commission arrangements and sales across several firms and imposing a pause on the consideration of new complaints. Read this article for further insights. #financialservices #motorfinance