Bank of Scotland Dealer Finance calls for a proactive approach to financial regulation?

Some months on from the introduction of FSA regulations on sales of general insurance, Bank of Scotland Dealer Finance believes the time is right to look at implementing a motor finance compliance system to complement it According to Paul Jordan, senior director at the Bank, such a move could have a number of positive spin offs for motor dealerships.

Jordan believes that with increasing financial regulation, the next area that is likely to come under scrutiny is the sale of finance products within the motor industry and the possible creation of accredited finance specialists within dealerships.

Comments Jordan: "It's fairly likely that the motor industry could have domestic or European finance regulation within the next five years. The question is, should we wait for it to be imposed, or tackle the situation head on? Having accredited finance specialists within dealerships would improve the credibility of the industry and point of sale finance as a whole. Accreditation would also add a level of professionalism and attract more people into the sector, particularly those who haven't considered a career in the motor sector before."

But he warns that any move would need to be a collaborative approach, involving motor finance providers - both major lenders and captive finance providers - dealerships and bodies such as the IMI, FLA, RMIF and the SMMT.

He adds: "There would be little point approaching the FSA without a consensus between these major groups and a framework with well thought through standards. It might seem like a difficult task and no doubt there would be challenges to overcome along the way. But, ultimately, it must be better to take the initiative, rather than be prescribed to by others."

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