Lawgistics have been providing legal solutions to the automotive industry for over two decades and, in that time, have become recognised as the legal experts for the motor trade. However, we do like to keep our members informed of other matters that may not be in our field of expertise, but we feel will be useful for our members to be aware of.
As stated on the Finance and Leasing Association’s (FLA) website, “The FLA is the leading trade association for the motor finance sector in the UK. In 2022, members provided £51 billion of new finance to help households and businesses purchase cars. 84% of all private new car registrations in the UK were financed by FLA members.” In short, all the main motor finance lenders are members of the FLA, and therefore, any credit broker that provides finance via these lenders needs to be aware of and follow the FLA’s codes of practice.
On 1 June 2022, the FLA announced there would be a new provision added to the FLA’s Lending Code. The FLA has added that FLA members can only arrange finance through intermediaries (dealers and brokers) that are Specialist Automotive Finance (SAF) approved, or those accredited under an equivalent training and competence scheme. Independent used vehicle dealers will be required to become SAF-approved or equivalent by 1 January 2025. Franchised dealers were required to be SAF-approved by 1 January 2023. The new requirement aims to further raise industry professional standards and support compliance with the FCA’s new Consumer Duty.
To recap, under the FLA’s Lending Code, FLA members can only arrange finance through SAF-approved dealers and brokers, and most of the UK’s vehicle finance providers are FLA members.
All of your customer-facing staff will need to pass the SAF Expert test for your dealership to become accredited, and this test needs to be taken every year to maintain your approved status.
As stated earlier, we are not experts in this field. However, due to our vast array of contacts within the automotive industry, we can point you in the right direction for assistance with such matters. Below are the experts who can help you with the SAF accreditation or equivalent training and competence schemes:
• Automotive Compliance Ltd
• The Compliance Guys Ltd
We cover roles within all departments and sectors of the Automotive industry, and are here to listen to your specific needs and find the most suitable candidates to fit your business.
