FCA Publish Policy Statement On Discretionary Commission Models And Commission Disclosure

Today, the FCA announced its decision to delay the implementation of the ban on “discretionary commission models”. As from 28th January 2021, Car Dealers will no longer be able to set customer finance rates as is currently the case; and any commission or fees payable will also need to be disclosed. The FCA have also stated that they will commence their supervisory work in September 2021 – in other words…mystery shops!

Despite this delay, Dealers are advised to exercise caution between now and then, as the Financial Ombudsman Service will still investigate any unfair contracts that may be put before them.

As a highly respected Principal Firm for both General Insurance and Consumer Credit, we can help you navigate these potentially choppy waters, by helping you prepare now for all of the regulatory challenges that lie ahead.

For an initial chat about how we can help you, please contact us via info@tracsnetwork.co.uk or 0114 244 4355.

If you would like to learn more about TRACS and how we can help you meet the requirements of the FCAS please follow this link  https://www.fisconline.co.uk/introducing-tracs/

If you’d  like to view the FCA policy statement in full please follow this link. https://www.fca.org.uk/publications/policy-statements/ps20-8-motor-finance-discretionary-commission-models-and-consumer-credit-commission-disclosure

 

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