Automotive Compliance

Who is Automotive Compliance?

Established in 2007, our expertise has been in supporting firms in the automotive industry with the challenges of Financial Conduct Authority (FCA) regulation.

We have been directly authorised by the FCA since 2009 for general insurance permissions, and consumer credit permissions since 2014, working specifically within the motor retail industry.

What do we do?

Automotive Compliance works with FCA directly authorised firms, along with our own Appointed Representative (AR) network, working with over 300 clients across the UK.

Leasing Brokers – what do you need to be aware of?

Within the leasing broker market, there is a perception that they are in the main out of FCA regulatory scope, however, this is changing with brokers now working in the B2C market with Personal Contract Hire (PCH).

Personal Contract Hire (PCH) is a product increasing in popularity with both consumers and brokers alike, but the FCA in their motor finance final rules, published in July 2020, has stated that this a market they will monitor, and if they find evidence of commission models in the consumer hire market that are leading to harm, they will look to act.

Even if leasing brokers are working in the B2B market, they can still fall under the Financial Ombudsman Service (FOS), updated in April 2019, for the small and medium-sized enterprises (SMEs) they transact with.

The changes mean that SMEs with an annual turnover below £6.5m and fewer than 50 employees, or an annual balance sheet below £5m are now able to refer unresolved complaints to the ombudsman service. This brought a further 210,000 additional UK SMEs with eligibility to complain to FOS.

“Treating Customers Fairly” (TCF) has to be at the forefront of your business, in evidencing to the FCA that your firm is acting in your customer’s best interests at all times.