FCA regulation presents a “great opportunity” for the UK auto finance sector as international conference sets the scene

Four months since the FCA took over from the Office of Fair Trading (OFT), changes in UK financial services legislation are beginning to take place. The FCA is a global leader in the governance of the financial services industry and as such, it is expected that new legislation will bring the UK industry in line with some of the more stringently governed regions across the world.

Alphera, which operates in more than 26 countries worldwide, has wide experience of conforming to a variety of regulations in differing markets. As such, the organisation is leveraging its international experience to provide a wider context to brokers and dealers on steering through the changes in UK regulations.

Andy Gruber, director at Alphera (pictured), explained: “With the changes coming into play under the FCA, the motor finance industry is able to look to the experience of other countries for lessons in adapting to legislative evolution.

“The focus on fair treatment of customers means that dealers and brokers will have to look at their current business model and where they may need to adapt over the coming months. Looking outside of the UK can offer some clarity on how we can adapt to these changes and, indeed, what they could mean for the industry as a whole.

“With Alphera having a global vision we can see that other countries also have to comply with very strict regulations. In fact, in many cases, other countries actually had to comply with higher standards of regulation than the UK market. For example, the Consumer Protection Act introduced in South Africa back in 2011 covers a series of rights that ensure fair, honest and value-for-money business is conducted.”

Reassuring sales figures

Gruber continued: “Against the backdrop of strict regulation, it is reassuring to look at sales figures from Europe, including Germany, which has had a highly regulated market for many years; sales are up year-on-year and, after a difficult six year slump, the recovery is well underway, showing that consumer confidence is continuing to grow.

“The work the FCA is doing within the industry is therefore a great opportunity for dealers and brokers. In our view it’s a valuable process to stop and reflect on how we operate and what we need to change to provide an even more customer centric experience. If dealers and brokers succeed in truly putting the customer at the heart of their business, our international experience shows that the upside for businesses can be tremendous.”

Gruber concluded: “Those who see the potential to maximise the new legislation in order to provide a high quality, customer-centric offering, will reap the benefits of a confident and more trusting marketplace.” 

Rising to the Opportunities of Post-Recession Growth, an International Auto Finance Network conference, is being held on Friday September 26 in London Canary Wharf.

To buy tickets at a reduced rate (only until 31 August 2014), please visit: https://www.eventbrite.co.uk/e/international-auto-finance-network-autumn-conference-rising-to-the-opportunities-of-post-recession-tickets-11853432937?access=all