The National Franchised Dealers Association (NFDA) has put together an information pack to help dealers implement the Office of Fair Trading’s (OFT) guidance for disclosing commission.
The Office of Fair Trading (OFT) 2011 Guidance for Credit Brokers and Intermediaries introduced the concept of commission disclosure for dealers selling finance products.
Dealers have been expected to comply with the guidance and disclose commission to customers in certain circumstances.
The guide is only available to RMI members.
Sue Robinson, NFDA director, said: “Failure to comply with the OFT guidance could have implications for dealers with regard to their consumer credit licence, particularly the OFT’s view on their fitness to hold one.”
The information pack and tool kit has been specifically tailored for the motor industry and will be available in two formats which include a web based tool and a written version.
Both versions will take the user through a process to ascertain any conflicts of interest when providing financial products to their customers and subsequently give their requirements to disclose the existence of commission.
They will also contain a range of information on commission disclosure issues that affect motor retailers which aims to answer any questions dealers may have on the subject.