The FCA has today confirmed it will introduce a ban on motor finance discretionary commission models. The announcement followed a consultation in October 2019. “In the light of consultation feedback and the additional operational pressures which the sector is facing at present the FCA has agreed to give firms limited additional time to implement the new rules, with the ban coming into force on 28 January 2021”, the FCA said.
“It is positive that the FCA has agreed to a six-month implementation period for the ban on discretionary commission modes, rather than the originally proposed 3-month, in line with NFDA’s previous lobbying calls.
“Franchised dealers are committed to providing clarity to their customers and NFDA supports appropriate measures that are of benefit to consumers.
“We will now be looking at the policy statement in detail to understand the full implications for the sector and continue to liaise with FCA and our franchised dealer members going forward”.
Sue Robinson, Director of the National Franchised Dealers Association (NFDA), which represents franchised car and commercial vehicle retailers in the UK, commenting on the FCA’s announcement.
About the RMI
The Retail Motor Industry represents the interests of operators in England, Wales, Northern Ireland and the Isle of Man providing sales and services to motorists and businesses. The RMI has a formal association with the independent Scottish Motor Trade Association which represents the retail motor industry in Scotland.