In this blog as part of Compliance Week 2022, the association’s Head of Compliance, Harry Madan looks at the BVRLA’s inspection programmes and how members can prepare.
2022 has been another busy year for the BVRLA Governance Programmes. These programmes include inspections which audit members against the association’s Code of Conduct and ensures high standards are consistently met across the membership. It is a crucial part of what we do.
The BVRLA works with Product Partnerships Ltd on our Leasing broker governance programme, and with Prestige Servicing Ltd on our rental and commercial vehicle (CV) programmes. Together, they have conducted over 220 inspections with BVRLA members in 2022.
Keeping compliant in a cost of living crisis
The current economic environment shines a spotlight on the need for compliance and good outcomes. They need to be a top priority across all organisations to protect both businesses and customers.
This sentiment is reflected in the implementation of the FCA’s new Consumer Duty. The new duty applies across the BVRLA membership, primarily where members are offering a regulated product. To help our members achieve good outcomes in all that they do, the BVRLA governance programme assesses members against the BVRLA Code of Conduct and other regulations applicable to their business type, including GDPR, FCA and CMA requirements.
The vehicle rental and leasing industry remains under intense media and regulatory scrutiny. Our programme allows members to demonstrate that they are compliant and trustworthy.
Being part of the BVRLA governance programme enables our members to continue to grow and develop the compliance aspect of their business. It is really important to use the process as an opportunity to develop your knowledge. Our inspection partners have years of experience and can will provide constructive, valuable feedback. Once you receive your report from the BVRLA compliance team, you will know which areas you need support on and where to find that support from the team.
Here I give some audit top tips for Rental and Commercial Vehicle operators and then Leasing Brokers below.
Rental and Commercial Vehicles
Through the rental and CV governance programme this year, members have been provided with guidance on a wide range of compliance topics. Common areas overlooked by members span vehicle data, the Rental Vehicle Security Scheme (RVSS), and ensuring health and safety requirements are met in-branch.
For those Rental or Commercial Vehicle members due their inspection in 2023, I would give the following top tips to ensure you get the most out of receiving a BVRLA inspection:
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Review your vehicle data procedures before your inspection: Do you have a designated stage in your vehicle-out process that encourages customers to remove their data before returning the vehicle? Do you have a step in your internal process upon return of the vehicle which cleanses the vehicle of customer data?
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Are your branch staff aware of the RVSS and do they know where to find any in-branch information about this? If not, use the BVRLA website to educate them.
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Walk through your sales process and make sure that you are satisfied that the customer is receiving as much information as possible and is made aware of all potential fees and charges in relation to their rental.
Leasing Brokers
The leasing broker governance programme is undergoing updates to include the Consumer Duty. The BVRLA is committed to supporting members at every stage of this and will communicate the changes in advance of them coming into effect next year.
If you haven’t already, it’s well worth visiting our Consumer Duty guidance page. There, you will be able to rewatch webinars, access guidance documents, read FAQs and download a checklist that we have made available for members. We have also created a direct inbox for any Duty-related queries: [email protected].
Before your next leasing broker inspection takes place, it would be beneficial to ensure the following areas have been addressed:
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Are your compliance procedures up to date? Do they include version control to evidence that they have been reviewed on a regular basis, along with a senior manager sign off?
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Does your complaints procedure include the right level of information? Remember to include the customers right to refer their complaint to the BVRLA conciliation service – or to FOS – and the FCA DISP timelines that you will be conforming to when responding to their complaint.
In the Compliance Team at the BVRLA, we’ll continue to focus on how we can support you whether that be before, during or after you receive your inspection. In the meantime, if you think of any better ways in which we can provide this support, we are always open to suggestions and eager to learn! Our Compliance telephone number is 01494 545739 and our inbox is [email protected].
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