The Retail Mediation Activities Return (RMAR) provides the FSA with the basis of the information it needs for the supervision of businesses. Dealers need to complete it online, with the return date based on their accounting dates. For those with year ends of December 31 or June 30, the first returns were due from the end of June.
“We believe that there is limited awareness of the RMAR report. It is designed to enable the FSA to monitor authorized firms’ capital adequacy and financial soundness,” says Stephanie Murdoch, managing director of FSA compliance company Auto Network UK.
In addition to the RMAR, the FSA also requires all authorized firms to complete a complaints return. Companies have 30 working days in which to complete and submit the returns.
Failure to report to the FSA within this time will result in an automatic administration fee of £250.
Further failure will result in enforcement action and the potential withdrawal of FSA permissions. “While a number of motor dealers and groups have achieved authorization, they are not necessarily following all the procedures required to achieve compliance,” adds Murdoch.
“In order to complete RMAR reports, the dealer must start to collect the data required from April 1 2005, and this is where we believe the motor sector may fall down.”