Following the Financial Conduct Authority motor finance review, brokers are reminded about the importance of commission disclosure and are advised to take time to understand what disclosures are needed and when disclosures should be made.
The FCA expects regulated firms to ensure that customers are aware of the existence and amount of any commission, before the credit agreement is entered into, if any of the following apply:
- from the customer’s perspective, the commission could have unduly influenced the broker into recommending or offering a particular product
- knowing about the existence or amount of the commission would materially impact the customer’s decision in entering the credit agreement
- the customer has formally requested details of the commission.
This information is outlined from page 18 onwards in the BVRLA’s FCA Guide to Compliance.
This BVRLA’s guide provides advice about how to stay compliant with FCA regulations.
