In The News
Article Date: 28 October 2019
With effect from 9th December 2019, Motor Dealers who are registered as a credit broker with the FCA must comply with the new Senior Managers Certification Regime.
The aim of the SMCR is to encourage greater individual accountability and higher levels of personal conduct for those involved in the provision of credit broking.
Senior Managers (a firm will usually appoint one person to fulfil this role) will need to establish a culture that delivers effective governance of the business at all levels, and to be seen to be leading by example from the top by taking personal responsibility for the decisions and processes that operate within the dealership.
Aside from the legislative requirement for the Senior Manager to file a Statement of Responsibility, the Senior Manager is required to encourage a workplace culture that embraces the new five conduct rules;
Post 9 December it will incumbent upon the Senior Manager to ensure that staff are fully trained including, most importantly, having each person being aware and understanding the practical implications of the new rules as they apply to the work they carry out.
Mike Jones, Chairman of ASE Global, commenting of the new regulations stated that “the new regime offers an ideal opportunity for motor dealerships to review their FCA practices and to provide an incentive to address needs within their business” adding that “the new regime requires businesses to require individuals to take a positive responsibility for their actions”.
In the light of the recent FCA report on the motor industry – https://www.fca.org.uk/news/press-releases/fca-acts-protect-those-buying-motor-finance Mike concluded by saying that “the new regime offers motor dealers the perfect opportunity to ensure that they have their finance broking activities in order for the future”
In case of any questions please contact at Chris.Cummings@ase-global.com
Tel: +44 (0)161 493 1930