James Tew, CEO at iVendi, said that, against this background, there is still quite a lot of confusion about what data needs to be collected.
“In some parts of the dealer sector, there is a sense that the FCA is an issue that can be put on the back burner following all the noise surrounding compliance but the truth is more likely to be that, with measures having now been in place for while, the first investigations will take place soon. This is certainly what happened in other sectors where the FCA introduced new regulation.
“The truth is that we still regularly come across dealers who are unsure about what data they should be collecting and how to record it. Many, in our opinion, are labouring under all kinds of mistaken beliefs but you need to be able to provide credible evidence that can be audited as easily as possible if the FCA comes knocking at your door.”
James said that the key was to understand the main principles behind the FCA’s aim of seeing customers treated fairly.
“It is all about ensuring that you provide customers with meaningful choice, accurate information and consistency across your business. However, you also have to be able to prove that you are doing this. If you are not recording the right information, all the hard work you have done to become compliant will be wasted.”
However, technology was making the tracking and recording of customer behavior much easier for dealers who were using motor finance platforms that helped promote compliance, he added.
“This is an area where we have done a lot of work and where our products can really help dealers to comply. For our customers, we can provide detailed records that show the activity of customers both online and in the showroom, the vast majority of it recorded automatically.
“This includes the products they have looked at, the quotes they have generated, whether they have looked at product information videos and more. All of this information could prove essential if the FCA comes knocking at your door.”