NFDA has urged the Financial Conduct Authority (FCA) to consider waiving its fees or at least implement a one-year deferral for motor retailers during these challenging times.
The Coronavirus outbreak is having a significant impact on the motor retail sector. Showrooms have now closed their doors for sales enquiries and/or deliveries, and, whilst repair centres may remain open to cater for essential key workers, the demand for essential service and repair services for other customers has declined as motorists make fewer journeys.
Franchised retailers provide sales and repair services to motorists and businesses across the UK, as well as car finance and insurance products.
Firms such as franchised dealers groups that are regulated by the FCA pay an annual fee to be authorised to provide finance products.
In light of the dire trading conditions facing our members, NFDA has written to the FCA to look to waive its fees or at least consider a one-year deferral of 2020 FCA annual fees for motor retailers.
Each measure that mitigates against the severity of the impact of the Coronavirus will be vital in retaining jobs and investments.
This simple yet effective measure would ease the burden on motor retailers and give them additional breathing space to meet obligations to staff and creditors.
NFDA welcomes the opportunity to further discuss with the FCA the feasibility of how a waiver or deferral of fees could be implemented and communicated to retailers.
We will keep our members updated.
The FCA acknowledged our request and confirmed they would be consulting shortly on this year’s fees, this would include a section on deferment.
