A recent survey by used auto finance platform Evolution Funding has highlighted significant confusion among dealers regarding the FCA’s expectations for Consumer Duty reporting.
As the 31 July deadline approaches for dealers to submit their Consumer Duty Annual Board Report, Evolution Funding surveyed its network of dealers to assess their understanding of the requirements.
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The poll, which received responses from 889 dealers, revealed that many are either unaware of the requirement to produce a board report or do not know that their first report is due by the end of July.
A significant 76% of respondents admitted they are not comfortable with the report’s content, format, and required management information.
Sam Osborn, Evolution Funding’s Head of Risk and Compliance, said about the findings: “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.
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By GlobalData“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.”
Osborn highlighted Evolution Funding’s commitment to supporting dealers: “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.”
This poll underscores the need for more comprehensive guidance and resources to ensure dealers, particularly smaller independents, can meet the FCA’s Consumer Duty standards effectively.
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