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What is FCA Compliance?

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What is FCA Compliance?

Customers deserve a fair deal, and unfortunately, some companies are not always honest - and this is what the FCA tries to stop.

Who are the FCA and what is FCA Compliance?

The Financial Conduct Authority is a governing body that aims to ensure financial markets work effectively, as this benefits not only the consumers but the economy as a whole. The FCA does this by regulating the conduct of roughly 58,000 businesses.

How does the FCA promote and ensure compliance across automotive and sales sectors?
The FCA has a specialist Enforcement Division that clearly outlines the consequences for automotive businesses that do not abide by the rules.

This is not limited to court action either as there are many actions the FCA can take against firms. No business, whether large, medium or small, is exempt from any repercussions enforced by the FCA.

Its Enforcement Division has close ties with the Authorisation, Supervision, and Strategy and Competition Divisions. This helps them to identify malpractice early on so they can act accordingly.

The FCA holds the power to enforce criminal, civil, and regulatory action against businesses and individuals, that do not protect customers or meet the right standards.

Here are some examples of how the FCA enforce their rules:

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  • Banning firms from carrying on regulated activities
  • Taking away a business’s authorisation
  • Suspending companies from undertaking regulated activities
  • Distributing fines against organisations and individuals who breach the rules and who break competition laws
  • Naming and shaming companies by publishing final notices
  • Involving the courts
  • Criminally prosecuting firms
  • Asking web hosts to delete websites

How can my business comply with the FCA?

Here’s a basic rundown of the ways to comply with FCA:

Register

The first stage in FCA compliance is to register with them. They will need a detailed overview of what your company is about and how it will make profits.

Get an auditor

According to the FCA handbook, firms must have an auditor in place. An auditor is someone independent of the company who inspects your company's accounts. They look for things such as fraud and are required to report their findings (whether good or bad) to the FCA.

Utilise KPIs

Using customer satisfaction KPIs can help you comply with the FCA. The FCA Regulatory software ensures customers are treated fairly. The TCF (Treating Customers Fairly) software is a simple to use operation paired with strong FCA compliance plus a complete reporting facility to deliver a platform that enables compliance to drive performance. TCF is frequently reviewed and is updated if any changes are made to the FCA rules and regulations.

Hire a compliance consultant

If you require assistance to comply with the FCA, you can get a compliance consultant. Although this is not a requirement it can be useful for some businesses.

To summarise

Well defined KPIs can be hugely advantageous to the automotive industry when carried out in line with FCA compliance. However, it is only reasonable that KPIs are kept at a manageable level to avoid staff having to break compliance to make a sale and shift their focus from customer needs to target-based bonuses via unscrupulous selling tactics.
Keeping on top of realistic targets ad performance can ensure business compliance and ensure sales are driven for the right reason. Management control and supervision of KPIs is essential to successful performance and compliance.

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