A recent survey of 200 car dealers has showed concerns over regulations that are putting many at risk of losing their credit broker status. 1 in 5 of the dealerships have said that FCA regulation is the single biggest challenge facing their business in 2014.
Close Motor Finance ran the survey in June. 86% of those surveyed said they intend to apply for FCA authorisation once their interim period expires.
Those who do not intend to apply explained the biggest reason for not doing so was a lack of information or expertise to enable them to apply. Those who are applying had pointed out compliance issues where they will need more expert assistance in applying for FCA authorisation.
Paul Kaye, sales and marketing director of Close Motor Finance, said the “FCA legislation is a daunting reality for many dealers and that there has been, and will continue to be, much effort and change required to adapt to the new regulatory landscape.”
“Feedback from our survey indicates that the majority of application deadlines fall in the first quarter of 2015 so we would encourage dealerships to review and familiarise themselves with the guidance now so there are no nasty surprises down the line.
“Our main message to dealers is to face the issue head on as missing the application window means ceasing to legally operate as a credit broker.”
Kaye said the Close Motor Finance survey revealed that 70% of dealers sell more than 20 vehicles on finance per year so credit related activities form a significant part of their business.
“If dealers are unsure of what steps to take or would simply like reassurance that what they are doing is correct, our team of experts are always on hand to help.”
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