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The ground rules of GAP in an FCA-scrutinised market, a ...

https://www.am-online.com/opinion/2020/01/24/the-ground-rules-of-gap-in-an-fca...

As widely publicised, the FCA aims to conduct three pilot evaluations of such markets and practices, the first of which is an evaluation of the FCA's September 2015 intervention into Guaranteed Asset Protection (GAP) insurance.

GAP pricing transparency needed from FCA | Latest News

https://www.am-online.com/news/2014/11/4/gap-pricing-transparency-needed-from-fca/37225

GAP pricing transparency would be the biggest single advantage that the FCA could provide to help new and used car customers make more informed choices.

FCA moves to fix flaws in GAP insurance sales | Latest News

https://www.am-online.com/news/2014/3/11/fca-proposes-changes-to-gap-insurance-sales/34628

The FCA report into GAP insurance said: “The sales process in car showrooms often leaves individuals believing that the only source of the product is the showroom where they are buying the car.”. The report showed that GAP add-on insurance claims ratios from 2008 to 2012 averaged just 10%. The FCA analysed evidence about firms and consumers ...

GAP and vehicle insurance providers implicated in FCA ...

https://www.am-online.com/news/finance/2016/07/22/gap-and-vehicle-insurance-providers...

GAP and motor-related insurance providers have been identified by the FCA as among principal firms failing to properly supervise appointed representatives. The FCA said three of the 15 principals within its thematic review sample were involved in the sale of GAP and other motor-related insurances via appointed representatives (ARs).

FCA regulations prove a boost for GAP | Finance

https://www.am-online.com/news/finance/2016/10/26/-FCA-regulations-prove-a-boost-for-Gap-

> More on the FCA and GAP sales. Automotive Management Live. Unique to the industry, Automotive Management LIVE is aiming to attract 500+ delegates from the franchised network and independent sector where they will have access to a host of exhibitors as well as being able to attend a series of seminars and listen to expert and keynote speakers ...

Car dealers' GAP sales fall 16-23% following FCA ...

https://www.am-online.com/news/market-insight/2018/08/01/car-dealer-s-gap-fall-16-23...

Responding to the findings of the FCA’s report into the effects of its GAP insurance compliance measures, Sue Robinson, director of the National Franchised Dealers Association (NFDA), said that she was “pleased to see that FCA is satisfied with the impact of their previously introduced remedies on GAP insurance”. She added: “The FCA has ...

GAP - am-online.com

https://www.am-online.com/tag/gap

The ground rules of GAP in an FCA-scrutinised market, a guest opinion. The Financial Conduct Authority (FCA) said, as part of its 2018/2019 Business Plan, it would strive to investigate the effectiveness and impact of its interventions into certain markets and industries.

FCA rules have not had a 'deep, lasting impact' on GAP ...

https://www.am-online.com/.../22/fca-rules-have-not-had-a-deep-lasting-impact-on-gap-sales

During September 2015, the month after the FCA’s new rules were introduced, Dealerweb highlighted an immediate 11% reduction, year-on-year, in GAP insurance sales. Dealerweb’s latest data shows that 20% of car buyers purchased a GAP insurance policy in 2016, compared to 21.5% of customers in 2015, equating to a 6% fall.

GAP sales 'bounce back' after introduction of FCA ...

https://www.am-online.com/.../gap-sales-bounce-back-after-introduction-of-fca-regulations

GAP sales are starting to recover following an initial slump that resulted from the introduction of new regulations from the Financial Conduct Authority (FCA) on September 1. According to Dealerweb there was an immediate 11% year-on-year reduction in sales of guaranteed asset protection in September following the introduction of the new GAP rules.

'Brace yourself for FCA investigation' car dealers warned ...

https://www.am-online.com/news/dealer-news/2016/08/08/brace-yourself-for-fca...

Other areas which Smith believes will come under the FCA microscope are the GAP regulations with some dealers wrongly believing that as appointed representatives, the four-day rule does not apply when GAP is sold at point of sale. Additionally there are a high number of independent dealerships, both new and used cars, who pass F&I business ...

FCA opens consultation on plans to alter GAP sales ...

https://www.am-online.com/news/2014/12/12/fca-opens-consultation-on-plans-to-alter-gap...

The Financial Conduct Authority has today announced a new consultation on proposals to limit point-of-sale offer of GAP insurance.

Insurance add-on suppliers resilient in face of FCA ...

https://www.am-online.com/dealer-management/finance-and-insurance/insurance-add-on...

The Financial Conduct Authority (FCA) is baring teeth, with total fines up threefold in 2018/19. Financial penalties rocketed from £69.9 million to £227.3m year-on-year. During the year, the FCA evaluated the impact of its changes to the way that dealers can sell guaranteed asset protection (GAP) insurance and found “our intervention had a ...

Car dealers reminded of new FCA rules governing GAP sales ...

https://www.am-online.com/news/dealer-news/2015/08/25/car-dealers-reminded-of-new-fca...

Following recent FCA rule changes and the introduction of new remedies for the sale of GAP there will be a need for dealers from September 1, 2015 to give customers specific information about the GAP products they are offering.

Search - am-online.com

https://www.am-online.com/search?page=3&term=fca gap

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The Financial Conduct Authority - is your car dealership ...

https://www.am-online.com/news/2014/4/1/the-financial-conduct-authority---is-your...

What the FCA's new consumer credit rules mean for car dealers. What are the FCA consumer credit rules? What powers does the FCA have? The FCA's 11 principles of business. FCA changes could ban dealers selling GAP at point of sale. Readers can view or download an ezine version of the special report by clicking the cover above.

FCA 'may limit point-of-sale finance if GAP moves succeed ...

https://www.am-online.com/news/2014/9/2/fca-may-limit-point-of-sale-finance-if-gap...

The Financial Conduct Authority (FCA) may seek to remove the point-of-sale advantage from used car motor finance if similar moves with GAP insurance are successful, said James Tew, director at iVendi. (pictured) “The arguments made against the sale of GAP as an add-on dealer product could potentially be equally applied to motor finance,” he ...

How car dealers can protect insurance sales after the FCA ...

https://www.am-online.com/news/2015/3/5/how-car-dealers-can-protect-insurance-sales...

The FCA’s pursuit of “better customer outcomes” is already being made evident in its market study of general insurance add-on sales, including GAP, because it is convinced that selling a regulated insurance product as an add-on often leads to consumers purchasing products that are of poor value and not what they need.

FCA changes could ban dealers selling GAP at point of sale ...

https://www.am-online.com/news/2014/3/28/fca-changes-could-ban-dealers-selling-gap-at...

The FCA has put together a 69-page document of proposals following its investigation into the general insurance add-ons market. Since the inquiry began in July 2013, the FCA has analysed evidence about companies and consumers in the travel, gadget, GAP, home emergency and personal accident add-on insurance markets.

FCA plans 'time to consider' clause for point-of-sale GAP ...

https://www.am-online.com/news/2014/8/28/fca-plans-time-to-consider-clause-for-point...

Dealer sales of GAP form part of a major review by the FCA, which plans a shake-up of the £1bn general insurance add-on market. Its plans include breaking the point-of-sale advantage for GAP insurance, forcing firms to publish claims ratios and banning pre-ticked boxes in sales and marketing documents.

Consumers 'flocking' to third party GAP providers ...

https://www.am-online.com/news/finance/2015/09/30/consumers-flocking-to-third-party...

The Financial Conduct Authority (FCA) introduced the new rules after concerns about the ‘add-on’ price of GAP insurance and the dominance of the market by manufacturers and dealers. Dealerships – accounting for 97%* of the market – must now provide the GAP insurance cost separately from other prices when buying a car, and allow four ...

Vertu halted GAP sales as audit raised FCA compliance ...

https://www.am-online.com/news/2014/10/21/vertu-halted-gap-sales-at-two-sites-as-audit...

An internal audit of FCA compliance led car dealer Vertu Motors to halt sales of GAP insurance at two of its dealerships in September. Michael Sherwin, Vertu Motors’ finance director and chairman of its compliance committee told AM: “If we have a poor internal audit result for a dealership in terms of their compliance with the FCA paperwork I switch them off from being able to sell GAP ...

Car dealers have less than three months to implement new ...

https://www.am-online.com/news/market-insight/2015/06/12/car-dealers-have-less-than...

FCA evidence suggests that GAP insurance sold as an add-on is often poor value for customers, with only 10% of retail premiums for add-on GAP insurance being paid out in claims. This is a very low claims ratio relative to other products.

Guest opinion: GAP Insurance, the new rules, what has it ...

https://www.am-online.com/opinion/2015/07/02/guest-opinion-gap-insurance-the-new-rules...

FCA evidence suggests that GAP insurance sold as an add-on is often poor value for customers, with only 10% of retail premiums for add-on GAP insurance being paid out in claims. This is a very low claims ratio relative to other products.. Like it or not the new rules must be adhered to from September 1st 2015, which doesn’t leave much time ...

FCA rules hit dealer GAP volumes by 11% in September | Finance

https://www.am-online.com/news/finance/2015/10/02/fca-rules-hit-dealer-gap-volumes-by...

UK car dealers have recorded an 11% reduction in guaranteed asset protection (GAP) insurance sales this September, compared to the same month last year, according to data from Dealerweb. The company said the fall in volumes is the first sign that the changes introduced by the Financial Conduct Authority’s (FCA) on September 1, governing how ...

FCA fines Moneybarn £2.77m for unfair treatment of ...

https://www.am-online.com/news/finance/2020/02/17/fca-fines-moneybarn-277m-for-unfair...

The Financial Conduct Authority (FCA) has fined automotive finance provider Moneybarn £2.77 million for failing to treat "vulnerable" customers fairly when they fell behind with loan repayments while in financial difficulties. The FCA said that the subsidiary of Provident Financial plc, a FTSE 250 company, did not give its customers the chance ...

A challenging year for insurance puts the spotlight on ...

https://www.am-online.com/dealer-management/finance-and-insurance/a-challenging-year...

By Tom Seymour. This year has proved a testing one for insurance industry suppliers as the Financial Conduct Authority (FCA) implemented its new Guaranteed Asset Protection (GAP) rules on September 1. The potential for the FCA to force dealers to reveal claim ratios across all add-on insurance products could also prove troublesome in the future.

Finance and insurance - am-online.com

https://www.am-online.com/dealer-management/finance-and-insurance?p=4

Insurance companies coping with the FCA’s new GAP regulations have nevertheless seen continuing growth in the past year. Dealers reap the rewards of record finance growth Consumer confidence, dealer expertise and support from finance houses have led to PCP success in the past 12 months.

Car dealers seek ways to pre-empt FCA inquiry into add-on ...

https://www.am-online.com/news/2014/1/3/car-dealers-seek-ways-to-pre-empt-fca-inquiry...

♦ See our report on the AM Hit for Six conference for more on the FCA and insurance. In just such a move, an AM100 dealer group has implemented the Association of British Insurers (ABI) guidelines on GAP across the board, while robust policies ensure all insurance products are subject to the same standards and there is consistency of pricing ...

Future-proof your finance and insurance business | Finance

https://www.am-online.com/news/finance/2015/12/17/future-proof-your-finance-and...

Franklin said those dealers who had engaged with their insurance partners to address the FCA’s September 1 GAP changes, setting in place systems and processes to ensure compliance and drive sales, had seen sales increase by 35% year-on-year in September and October 2015.

Compliance and how to achieve it - advice from the AM F&I ...

https://www.am-online.com/news/2014/12/19/compliance-and-how-to-achieve-it---advice...

Advice from the expert speakers at AM's F&I Compliance Conference on meeting and conforming to industry-regulating bodies