THE BVRLA has written to the FCA objecting to the proposed fee increase for regulated brokers and particularly the new fees surrounding appointed representatives (ARs).
Brokers could be facing a significant rise if the proposed fees go through: a rise to £1151 for regulated brokers; and £250 for every AR.
In its response, the BVRLA raised concerns concerning the timing of the proposed fee increase given the impact of COVID-19, and also highlighted the reported poor levels of service BVRLA members had received, making an increase unjustified.
The BVRLA also said the principals fee for operating ARs was not based on an understanding of how broker ARs work in the leasing sector, but were based on investigations into market failings in the insurance and investments sector.
Writing to the FCA, BVRLA chief executive Gerry Keaney responded:
General fee increases would be poorly timed due to the continued effects of the pandemic and inappropriate given the poor level of service experienced by members. The AR proposal in particular does not have supporting evidence to suggest it is required in our market.
For further information, go to the BVRLA’s FCA response page.
Ralph Morton is the leading journalist in the leasing broker sector and editor of Broker News, the website which provides information and news for BVRLA-registered leasing brokers. He also writes extensively on the fleet and leasing market in both the UK and Europe.
