How Does Regulation Promote Healthy Competition in the Automotive Industry? The automotive sector is one of the sectors included within the industries regulated by the FCA. Negative competition can occur within the automotive sector; therefore, it is vital that automotive firms are aware of these destructive practices in order to spot and report them to the FCA.

Even regulated financial firms can fail and cause financial, emotional, and practical loss and disruption or damages.
When this is the case, there are establishments and processes in place to help protect consumers and ensure they can claim compensation due to firm failure.

Regulation of the Automotive Sector: The new Consumer Duty will require firms to have more transparent communication with consumers. Regulation of the Automotive Sector: The new Consumer Duty will require firms to have more transparent communication with consumers. Consumer Understanding, Price & Value, Products & Services, Customer Support

4 Major Outcomes For Consumer Duty: The new Consumer Duty introduced by the FCA proposes stricter standards for the treatment of customers by firms within the financial market, which includes firms in the automotive dealership industry. More specifically, consumers are entitled to clear and comprehensible communication, products and services which fulfil their requirements and provide fair value, and that they are provided with an appropriate level of customer support whenever they should need it.

Through the Financial Conduct Authority’s Appointed Representative model, the responsibilities of an appointed representative (AR) are largely mitigated by the principal firm authorising their financial activities. However, due to the rising harm seen by the FCA during recent years, last year the FCA announced it would be tightening the regulations and responsibilities surrounding ARs and their principal firms for greater compliance.

The recent rise in financial harm experienced by the Financial Conduct Authority, or FCA, within FCA regulated markets has meant the body has strengthened regulations surrounding Principals and their networks. This action signals the adaptability of the FCA in addressing the current requirements of the financial market, helping to keep the market stable and a safe space to operate in.

The Financial Conduct Authority’s 11 Principles of Business are guiding fundamentals a business must adhere to whilst regulated by the FCA. These principles communicate how a business must conduct itself and the standards the FCA will hold it to.

The Financial Conduct Authority regulates the UK financial market – which includes automotive dealerships. One of the key principles of the Financial Conduct Authority, also referred to as the FCA, is the protection of consumers through fair treatment (treating customers fairly, or, FCA TCF).

The financial market is particularly susceptible to corruption – with the potential effects of this being devastating. It is particularly important, therefore, that when working within the financial sector such as at an automotive dealership, you remain vigilant about the common forms of financial corruption, including market abuse, reporting suspected market abuse as it arises.