In the ever-evolving world of car finance, staying abreast of regulatory changes is not just advisable; it’s imperative. The Financial Conduct Authority (FCA) recently underscored this necessity by publishing an update on its efforts to curb misleading adverts and financial promotions. At Marsh Finance, we pride ourselves on being more than just a lender; we are your partner in navigating these changes, ensuring you remain compliant and ahead of the curve.
In 2023, the FCA’s diligent oversight led to over 10,000 financial adverts and promotions being withdrawn or amended—a significant increase of 17% from the previous year. This statistic alone highlights the tightening grip of regulatory oversight, but the underpinning reasons for these interventions deserve our attention.
Key Regulatory Updates and Their Implications
The Consumer Duty and Its Role
Marsh Finance: Your Partner in Compliance and Beyond
Key Regulatory Updates and Their Implications
The FCA’s increased issuance of alerts, rising to 2,285 in 2023 from 1,800 the previous year, clearly signals its commitment to protecting consumers from scams, particularly in investments and pensions. The recent focus on illegal crypto-asset promotions underscores the expansion of the FCA’s concern, reflecting the broader changes in the financial landscape and how consumers interact with it.
Of particular note is the FCA’s concern regarding the rise of ‘finfluencers’—influencers promoting financial products on social media. This trend highlights the changing channels of financial promotion and underscores the need for firms to ensure that any financial promotion, regardless of its medium, is clear, fair, and not misleading.
Furthermore, from February 7, 2024, the requirement for authorised firms to obtain permission from the FCA before approving promotions for unregulated persons marks a significant shift. It emphasises the need for expertise and competence in the approval process, ensuring that consumers have the information to make informed financial decisions.
The Consumer Duty and Its Role
The introduction of the Consumer Duty in July 2023 is a cornerstone in the FCA’s efforts to ensure that firms are genuinely acting in the best interests of consumers. It mandates that firms provide clear and comprehensive information and demonstrate that their actions help consumers make effective decisions.
This Duty is not just a regulatory hoop to jump through; it represents a shift towards a more transparent and consumer-focused approach to financial services, including car finance. For dealerships, this means ensuring that your promotions and the financial products you offer are not just compliant, but genuinely in the best interests of your customers.
Marsh Finance: Your Partner in Compliance and Beyond
With over 50 years of experience in the car finance industry at Marsh Finance, we understand the challenges and opportunities presented by this evolving regulatory landscape. Our unique position as a family-owned lender allows us to offer more than just financial solutions. We are committed to being your partner, helping you navigate these changes with ease and confidence.
Our free compliance and operational consultancy service is specifically designed to support our partners in this area. We provide expert guidance to ensure that your financial promotions are compliant with the latest FCA regulations and effective in communicating the true value of your offerings to your customers.
The FCA’s Stance on Misleading Ads and Financial Promotions
Lucy Castledine, Director of Consumer Investments at the FCA, succinctly captures the essence of the regulatory body’s mission: “People need clear, fair and accurate information to base their financial decisions on. We will continue to intervene and take action when we identify firms not meeting our minimum standards.” This statement is a reminder of the importance of integrity in financial promotions and the role of regulatory bodies in maintaining this standard.
As senior stakeholders at car dealerships, it’s crucial to understand that the landscape of car finance is not just changing; it is becoming more demanding regarding transparency and consumer protection. The recent actions and directives from the FCA are clear indicators of this trend.
Partner with Marsh for a Full Financial Promotions Review
In light of these developments, Marsh Finance offers a unique opportunity for car dealerships to get ahead of regulatory challenges. Partner with us and receive a full financial promotions review at no cost. This service is designed to ensure compliance with the latest FCA guidelines and enhance the effectiveness of your financial promotions, aligning them with the needs and interests of your customers.
As your partner in car finance, we are committed to helping you navigate the industry’s complexities, ensuring that your business not only remains compliant but thrives in this ever-changing landscape.
Don’t let regulatory changes catch you off guard.
Contact Marsh Finance today to take advantage of our free financial promotions review service. Let us help you ensure that your financial promotions are not just compliant but compelling, clear, and customer-friendly. Together, we can navigate the evolving car finance industry with confidence and integrity.
Partner with Marsh Finance, where your compliance and success are our priority.