Conducting the authority
24 April 2017
Last week, the Financial Conduct Authority announced its intention to investigate motor finance selling practices, as it believes there may be conflicts of interest and irresponsible lending in the sector.
If that is indeed the case then it absolutely warrants an enquiry, but we dont yet know precisely what the FCA is looking for, nor what spurred the investigation and you cant help but wonder what the industry has done to yet again become a target.
Im not suggesting that malpractice doesnt exist, but it does in any industry, and given the level of regulation we have today which is no bad thing it seems unusual that the FCA is again targeting automotive retailers, no more than a year or two after the gap insurance episode.
Perhaps the way to approach investigations of this nature is that they are now a way of life, and retailers with their ducks in order obviously have no cause for concern. The FCA has involved itself in the industry in the past, but the industry has dealt with it and retailers are still selling cars on finance.
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