THE FCA has announced that it is delaying the publication of its Motor Finance Policy Statement.
While the review into the commission structures of motor finance brokers and dealers has been published, the policy statement was due Q2 2020.
However, more pressing concerns regarding the coronavirus crisis has meant that publication has been delayed.
Christopher Woolard, interim chief executive, said:
“Our highest priority is to deal with the financial implications of the coronavirus (Covid19) pandemic quickly and effectively.”
The FCA’s business plan sets out four key areas on which it wants to focus. The most relevant for leasing brokers are:
- Ensuring that consumers do not get into unaffordable debt and are treated well if they do
- Ensuring that consumers are offered fair value products in a digital age and are not at risk of being treated unfairly in the pricing and other terms they receive
- And focusing on desired outcomes rather than narrow compliance
It also added that it wanted to see enhanced governance and accountability through the SM&CR.
FCA fees frozen and extended period to pay
Woolard said that to aid financial firms during COVID-19, they would be taking action on fees. He said:
“We’ve also published our annual fees consultation. We are freezing the fees to be paid by the smallest 71% of firms for next year, and giving small and medium firms an extended period to pay.”
FCA Business Plan 2020/21
Brokers who want to read more should go to the FCA Business Plan 2020/21.
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.
