Preparing for your Governance Programme Audit

Working with the Competition and Markets Authority, the BVRLA have developed a programme which ensures that rental and commercial vehicle members are checked to a high standard in line with the BVRLA Codes of Conduct. This looks at the member’s business operations, documentation and procedures in detail to see if there are any gaps in which the BVRLA can help and support. The process will also include the inspector performing a vehicle check on 2 ready to rent vehicles to check such areas as vehicle condition and vehicle safety.

The AA has over 100 years of experience in the motor industry and offers a variety of services with their expert knowledge. The AA inspectors involved in the programme deliver a professional evaluation of each member which is compiled into a full audit report which is given to the member following BVRLA review along with any relevant supportive guides from the BVRLA. The inspectors will ensure the member is confident and competent in what they do on a daily basis as well as take a detailed look at two of the member’s rentable vehicles.

Following each audit, the member will receive a full report which highlights all areas looked at and what improvements need to be made, if any. An Action Plan is created by the BVRLA to ensure these points are followed up along with any relevant guides or fact sheets that will help the member. Overall, the process helps the member achieve a minimum standard and earns their place within BVRLA membership which provides a greater customer perception.

You will first be contacted by the BVRLA Compliance Team via a letter which will notify you that you have been scheduled for an audit visit. Shortly after this, you will receive a call from the AA who will arrange a suitable date with you for the visit which will be followed up with a confirmation email including an information sheet. The visit will then take place on the agreed date and will take about 2-3 hours. Once completed, a BVRLA Compliance Officer will send your full report which details the inspector's findings along with any relevant supporting documents that you may require.

What areas are looked at:

• Premises & Staff
• Sales process
• Pre-rental vehicle process
• Post-rental vehicle process
• Ready to rent vehicle check

How the member can prepare:

The information sheet provided by the AA prior to your visit will detail the areas to be looked and assist you with what you will need to provide on the day such as customer facing documetation used as part of the sales process. It is important that you prepare your documentation and ensure that a senior member of staff is available on the day.

BVRLA Support:

The BVRLA have a library of fact sheets, guides and templates that members can use to help with any outstanding points found during their visit. The BVRLA website also includes access to further useful information and downloadable documents. The Compliance Team will be on hand to answer any questions that you may have.

What happens post visit:

If necessary, an Action Plan will be created for you which highlights low, medium and high risk issues that need to be addressed. This will be monitored by the BVRLA Compliance Team who will continue to support you until sufficient evidence is provided to close the plan.

A majority of leasing brokers will be authorised and regulated by the FCA. With such strict rulings in place, anyone found not to have the correct policies and/or procedures in place can be at risk of losing their registration with the FCA and therefore unable to continue to trade and operate. The BVRLA governance programme assists leasing broker members with understanding what requirements they need to have in place and how to be compliant under both the Code of Conduct and the FCA handbook.

Product Partnerships Limited (PPL) have solid experience within the motor finance sector supporting vehicle manufacturers and dealerships across the UK as both a Principal firm for its Appointed Representatives and its clients. Their experience In designing oversight and inspection programs will be a valuable contribution to the BVRLA’s long term plans for its members

The leasing broker governance programme is funded by a select number of major funding companies. Completing an audit means the funders can have confidence in their brokers that they are fully compliant and operating to the minimum regulated standard. Those members who are looking to start a relationship with a new funder may be more favourable once an audit has been completed and shown to be of an excellent standard.

One of the PPL team will send you an introduction email once your inspection is due requesting you to ‘book your appointment’ through PPL’s online bookings scheduler, at a time that’s convenient to you and your business. One of the PPL team will call you to confirm understanding of the details of your booking and be there to assist with any questions or queries prior to your inspection date, which will be handled by one of our experienced inspection team.

What areas are looked at:

The visit will primarily look at the 10 BVRLA Code of Conduct principles which includes elements of FCA regulatory requirements. 
 
How the member can prepare:

An information sheet is sent to the member from PPL before their visit which includes areas being looked at and what they will need to provide prior to the visit for the inspector to review. 

BVRLA Support:

The BVRLA have a library of fact sheets, guides and templates that members can use to help with any outstanding points found during their visit. The BVRLA website also includes access to further useful information and downloadable documents.

What happens post visit:

If necessary, an Action Plan will be created for the member which highlights low, medium and high risk issues that need to be addressed. This will be monitored by the BVRLA Compliance Team who will continue to support members until sufficient evidence is provided to mark the visit off as a ‘Pass’.

One of the PPL team will send you an introduction email once your inspection is due requesting you to ‘book your appointment’ through PPL’s online bookings scheduler, at a time that’s convenient to you, as well as a link to submit your pre-inspection questionnaire and upload your supporting documents. This is done online allowing you to be in control of the process and at a time that suits your business. One of the PPL team will call you to confirm understanding of the details of your booking and be there to assist with any questions or queries prior to your inspection date, which will be handled by one of our experienced inspection team.
 
What areas are looked at:

PPL will look at the firm, commission and remuneration, conflicts of interest, compliance, financial promotions, training, complaints, sales process, data protection, dealing with FCA, BVRLA Code of Conduct and case testing.

How the member can prepare:

An information sheet will be sent from PPL before your visit which includes areas being looked at and what they will need to provide prior to the visit for the inspector to review. It is advised that you review what regulated requirements are expected of you under FCA terms and rulings of registration. 
 
BVRLA Support:

The BVRLA have a library of fact sheets, guides and templates that members can use to help with any outstanding points found during their visit. The BVRLA website also includes access to further useful information and downloadable documents.

Trending areas include:

• Terms and Conditions
• Information Notice
• Incentives and Conflicts of Interest
• General Data Protection Regulation
• Financial Promotions
• Prior Information and Cancellation Rights
• Sales Process

What happens post visit:

If necessary, an Action Plan will be created for you which highlights low, medium and high risk issues that need to be addressed. This will be monitored by the BVRLA Compliance Team who will continue to support you until sufficient evidence is provided to mark the visit off as a ‘Pass’. Relevant funders will also be notified of the members progress and results for further support.

What information is passed to relevant funders:

Any funder who supports the programme that you have a relationsihp with will be sent a copy of your report. A monthly bespoke update also goes out to the participating funders which details members who have received an audit and also who have completed their action points. Funders will be advised where a member does not complete any action points within the given timescale.