What The FCA Expects From The Consumer Credit Sector
At a speech delivered by Jonathan Davidson, Executive Director of Supervision – Retail and Authorisations, at the FCA on March 21st at the Credit Summit in London, attendees were left with a very clear view that company culture will be a primary focus under the Senior Management & Certification Regime (SM&CR).
In the speech entitled “What can the consumer credit sector expect from the FCA?”, Jonathan Davidson said the motor retail business model “raised serious concerns about the way in which lenders in the motor finance market are choosing to reward car retailers and other brokers for business. This was despite the efforts of the Finance & Leasing Association and many of its members to move the industry away from the Difference in Charges business model.”
Highlights from the speech were:
There has been a lot of change in the consumer credit sector, but the FCA’s focus on affordability, business models and culture hasn’t and won’t change.
Two areas of focus for the FCA in the high cost credit sector will be re-lending and affordability.
A healthy, purposeful culture will be the best way to deliver value for firms, their clients and their employees. The Senior Managers and Certification Regime (SM&CR) provides some minimum standards for culture.
Commenting on the speech, Simon Young, Managing Director of FISC stated, “Whilst the speech was focused on consumer credit, every regulated company must focus on ensuring it has a positive customer-centric culture. Those who have been proactive in this area will attest to the fact that a good culture leads to good customer outcomes, increased sales and profitability and less staff attrition.” Simon went on to say, “FISC has launched classroom-based training for its TRACS’ Appointed Representative Members this year to meet their CPD requirements. The training is based upon regulation in the sales process and touches upon culture and customer outcomes throughout.” Finally Simon said, ”We are delighted as part our CPD training to announce that FISC will be working closely with Steve and Matt Whitton of SSW Automotive, who are industry specialists in sales training, business performance and management development. SSW Automotive will be working alongside FISC in some of our larger clients delivering our culture-based sales process training.”