Dealers are regularly collecting the wrong data or are proving to be unsure of how to meet the demands of an FCA investigation.
Online retailing solutions provider iVendi says that while the FCA is likely to be gearing up for its first investigations in the sector, there remains some confusion about the information that needs to be recorded on an ongoing basis.
Chief executive James Tew (pictured) said: “In some parts of the dealer sector, there is a sense that the FCA is an issue that can be put on the back burner after all the noise surrounding compliance but the truth is more likely to be that, with measures having now been in place for while, the first investigations will take place soon.
This is certainly what happened in other sectors where the FCA introduced new regulation, he said.
“Against this backdrop, we still regularly come across dealers who are unsure about what data they should be collecting and how to record it.
“Many, in our opinion,are labouring under all kinds of mistaken beliefs but you need to be able to provide credible evidence that can be audited as easily as possible if the FCA comes knocking at your door.”
Tew said that the key was to understand the main principles behind the FCA’s aim of seeing customers treated fairly.
“It is all about ensuring that you provide customers with meaningful choice, accurate information and consistency across your business.
“However, you also have to be able to prove that you are doing this. If you are not recording the right information, all the hard work you have done to become compliant will be wasted.”