FALLING foul of the new Financial Conduct Authority training regime risks fines and termination, according to Automotive Compliance.
It has carried out a survey of Motor Dealers and was surprised to learn that following the October 1 deadline of the new Insurance Distribution Directive, 80% of dealers are not keeping up with the legislation.
They have not implemented a Continuing Professional Development (CPD) to evidence that staff are kept up to date and have the right skills and knowledge when it comes to giving customers advice regarding insurance products.
Fifteen hours of CDP was made mandatory to Motor Dealers authorised by the FCA for the sale of general insurance products such as GAP.
Tom Steenson, National Training Manager at Automotive Compliance, said: “More concerning was that in many cases when we asked dealers about the new IDD they did not know there was a training implication to the new directive.
“While dealers were familiar with the new IPID documents that replace the existing Key Facts issued to customers, most were unaware of their responsibility to ensure that frontline sales staff, and anyone else involved in the distribution of insurance, had to undertake 15 hours of relevant quantified CPD.”
The FCA has a number of powers that can be imposed for failing to meet regulatory requirements. These include issuing fines against firms and individuals who breach the rules.
Automotive Compliance has a ready reckoner on its website with directions to further information for those that are unclear of their regulatory obligations or if a dealer just wants further information.