A recent poll by used auto finance platform Evolution Funding has revealed that dealers are unclear on the FCA’s expectations of consumer duty reporting.
As the 31 July deadline approaches for dealers to complete their Consumer Duty Annual Board Report, Evolution polled its dealers on their understanding of the requirements.
889 dealers responded, with a significant number either unaware of the requirement to produce a board report or not knowing they must produce their first report by the end of July.
When asked if they were comfortable with what the report should include, such as content, format, and management information, 76% of respondents said they weren’t.
Sam Osborn, Evolution’s head of risk and compliance, said:
“One year into consumer duty, it’s evident that dealers, especially smaller independent ones, need better support and guidance to meet the duty’s requirements, alongside improved benchmarking for general consumer duty standards.
“Principles-based regulation necessitates interpretation, demanding significant resources. This is challenging for smaller dealerships where time and specialist roles are scarce.
“Dealers are committed to serving their customers well, but knowledge gaps exist. It’s crucial that brokers and lenders offer direction and resources, leveraging their expertise and specialised teams.
“In addition to the technology and compliance processes we have in place, Evolution is dedicated to providing resources and guidance to help dealers meet their regulatory obligations. Our Consumer Duty Resource Hub offers extensive support, and we will continue to update it with new information.”
