Latest from the BVRLA in response to Court of Appeal ruling

THE BVRLA is continuing its intensive efforts to provide leasing brokers with clarity on motor finance and commissions disclosure as quickly as possible.

Utilising its long-established relationships, the association is working with regulators, government, members and industry stakeholders to provide legal clarification and operational support. Last week’s announcement from the Financial Conduct Authority was a positive step.

Securing a consultation on extending the time motor finance firms have to handle commission complaints has been a core part of the BVRLA’s engagement with the FCA since the Court of Appeal ruling on 25 October. If taken forward, an extension is expected to be in place by mid-December. Seeing it being progressed is a positive development that will give BVRLA members and other firms working in motor finance a greater window in which to manage the expected increase in complaints being received.

While the extended complaints window will be a positive step, many challenges remain and the pressure on leasing brokers is high. The association continues to take immediate steps now.

A key aspect of this is ensuring that members can continue to operate in a compliant and sustainable manner. As such, the association has developed a Risk Assessment template document to support members in establishing where they may be impacted or need to make operational changes. The contents of the document correspond with a small number of updates made to the BVRLA’s Leasing Broker Inspection programme. Updates have been informed by input from the BVRLA’s Leasing Broker Committee and panel of funders.

The contents of the programme remain under review and may be updated further as greater legal clarity is provided. Members should contact the team directly (compliance@bvrla.co.uk) with any questions relating to the inspection programme.

Updated FAQ

The BVRLA has also shared the third iteration of the Frequently Asked Questions document provided by Norton Rose Fulbright. Since its first iteration, the FAQ document addresses:

Which customers are sophisticated?
Are firms out of scope if they only deal with sophisticated customers?
What steps should brokers/funders consider in circumstances where there is a ‘disinterested’ or ‘fiduciary’ duty owed by the broker to the customer?

Any comments or questions relating to the ruling should be directed to commissions@bvrla.co.uk.

Commissions taking centre stage at Industry Outlook Conference

The agenda of the BVRLA’s flagship Industry Outlook Conference has pivoted in light of the Court of Appeal ruling.

Taking place at the British Motor Museum (Gaydon, Warwickshire) on Thursday 05 December, the Conference now includes an ‘In Search of Commissions Clarity’ session that will see sector experts sharing what the Court of Appeal ruling on 25 October means for members. The discussion will take stock of the initial impacts, digest how the sector has acted in response, and take a forward look at how the situation may evolve. Elsewhere on the full-day agenda are panel discussions with industry leaders looking ahead to 2025, as well as an Economic Outlook and assessment of the recent budget.

Full details about the Industry Outlook Conference are available online. The event is tailored to meet the needs of every BVRLA member, regardless of business type or size.

A limited number of tickets are still available, exclusively to BVRLA members at £299 + VAT, with SMEs receiving the reduced rate of £149 + VAT.