Update: the Court of Appeal on Commission Disclosure

Understandably there continues to be some nervousness among leasing brokers following the Court of Appeal’s verdict on 25 October, and understandably so. There remains confusion as to why credit broking for finance and credit broking for hire are lumped into the same basket.

However, despite Ayvens and Lex Autolease currently being absent from the market, most brokers are working with the remaining broker funders to find a way to navigate the current situation.

In the background, Rod Lloyd, Chair of the BVRLA Leasing Broker Committee, has been in constant communication and meetings – both last week and this – with members of the FCA, HM Treasury, BVRLA and the FLA in order to gain greater clarity on how to react to the Court of Appeal. It is also hoped that the FCA will extend its pause on DCAs to include the current issues – which has now happened (see FCA statement published 13 November 2024).

What’s perfectly clear, though, is that leasing brokers have a critical role in providing vehicles for companies to do business, both now and in the future. What we need now is clear guidance from the FCA on what happens next.

Ralph Morton, editor