FCA to Conduct Motor Finance Review
24th April 2017
The Financial Conduct Authority (FCA) have revealed their priorities for the year ahead, which includes their plan to conduct a review of the motor vehicle finance industry.
FCA Chief Executive, Andrew Bailey, announced at a press conference on the 18th of April the publication of several FCA corporate documents, including their 2017/2018 business plan, saying “As I hope these publications show, we are determined to be a leader in fair, effective and transparent regulation.”
The comprehensive plan detailed their priorities across several financial sectors. The document also set out their key planned activities within the retail lending sector, which includes Motor Finance, where the FCA want to work with businesses to help them understand the regulations and raise standards.
The publication stated: “We are concerned that there may be a lack of transparency, potential conflicts of interest and irresponsible lending which may exist in the motor finance industry.
“We will conduct an exploratory piece of work to identify who uses these products and assess the sales processes, whether the products cause harm, and the due diligence that firms undertake before providing motor finance.”
According to their plan, the review is set to be completed by 2018/19, after which the FCA will assess whether, and if necessary, how to intervene in the motor finance market.