The FSCA has given motor dealers and financial institutions operating in the vehicle asset finance (VAF) space until the end of June to complete a questionnaire about dealer introductory commissions (DIC).
In a communication issued on 13 May, the Authority said that, following regulatory investigations undertaken in the British and Australian VAF markets, the FSCA initiated an industry discussion in the last quarter of 2020 with a focus on the payment of DIC.
The meeting was attended by representatives from the Banking Association of South Africa (Basa), the National Automobile Dealers’ Association, the Independent Dealer Association, the major banks and more than 16 other credit providers operating in the VAF space.
It was agreed that Basa would co-ordinate a workgroup of industry stakeholders to develop a request for information (RFI) for the FSCA to obtain detailed information about how the sector operates. This is considered vital to provide context and guidance to the FSCA regarding the proposed regulation of DIC processes, to support and enhance customer welfare as may be considered necessary, the FSCA said.
Banks and credit providers operating in the VAF environment and motor vehicle dealers must complete a questionnaire (Annexure A) and email it to FSCA.RFDStandards@fsca.co.za by 30 June.
A failure to provide the information by the deadline is an offence under section 267 of the Financial Sector Regulation Act.
RFI 4 of 2022 and Annexure A (an Excel file) can be downloaded from www.fsca.co.za > Regulatory framework > Notices > General > 2022
For more information, email Hannelie Hattingh at Hannelie.Hattingh@fsca.co.za.