THE FCA’s new rules on Commission Disclosure came into force on 28 January 2021.
The regulation forms part of the CONC rules on affordability and transparency.
This is to ensure regulated contract hire offered to a customer is suitable and that the customer also meets the underwriting requirements of the funding partner.
To help leasing brokers stay compliant, the BVRLA has produced a Factsheet called Affordability Checking and Pre-Contract Transparency.
The BVRLA says the factsheet will help brokers understand their obligations regarding reviewing affordability as part of the assessment of the suitability of a lease contract; and understand what documentation and information they should be providing to their customers in order to ensure that they can make informed choices about whether or not to enter into a finance agreement.
BVRLA leasing brokers can obtain the factsheet free by clicking this link: BVRLA factsheet Affordability and Pre-contract Transparency.
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.
