An Evolution Funding poll has revealed dealers are unclear on the FCA’s consumer duty reporting requirements.
889 dealers responded and a significant number were either unaware of the requirement to produce a board report or did not know they must produce their first report by 31 July.
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.
When asked if they were comfortable with what the report should include, 76% of respondents said they were not.
Osborn said: “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.”