Latest leasing broker audits show compliance and commission disclosure need improvement

LEASING brokers need to improve their game in two areas highlighted by the BVRLA’s inspection team.

According to the auditors, the first area is around compliance procedures. The BVRLA found that the review dates on leasing broker members’ Compliance Policies and Procedures were not up to date. The auditors commented:

It’s important to implement compliance procedures, but equally as important to review them on a regular basis and document evidence as and when this is done.

The other area was over commission disclosure. The BVRLA said that the Commission Statement in all documentation should include the nature and basis of commission and whether the payment of commission to the firm by the funder affects the amount payable by the customer.

The BVRLA added that it wanted to assist members in staying up to date. Broker association members are being encouraged to ensure they are adopting best practice for compliance all year around. The BVRLA added:

If members want to discuss these areas in advance of their next inspection, or to see if their processes are keeping up to date, contact compliance@bvrla.co.uk.

Details of the leasing broker audit and code of conduct are available here on the BVRLA website.

BVRLA code of conduct for leasing brokers

1. To provide clear pricing for all products and services sold via any sales channel, printed or digital, which promotes a member’s products.
2. Not to misrepresent any information about their products or services.
3. To behave at all times with integrity and ensure that any agents working
   on their behalf also follow the standards set out in this Code of Conduct.
4. To understand and comply with all rules and regulations relating to the service or product provided.
5. To provide customers with the information they need to make an informed decision about the product/service offered.
6. To operate from an established place of business that is maintained to a professional standard.
7. Not to use any advertising material containing misleading or inaccurate statements and to comply with the codes and standards set by the regulators.
8. To resolve customer complaints according to the standards set out in this Code of Conduct.
9. To ensure that employees, where appropriate, are adequately trained to a standard that enables them to adhere to this Code of Conduct.
10. To display the BVRLA logo.