Some dealers may be unprepared for possible future Financial Conduct Authority (FCA) investigations, iVendi has warned.
The technology provider said dealers are unaware of exactly what data they should record, and therefore risk having insufficient information for an FCA audit.
James Tew, chief executive officer, iVendi, said: “The first investigations will take place soon. This is certainly what happened in other sectors where the FCA introduced new regulation.
“Many [dealers], in our opinion, are labouring under all kinds of mistaken beliefs, but you need to be able to provide credible evidence that can be audited as easily as possible if the FCA comes knocking at your door.”
Tew stressed the importance of not only understanding the principles behind the FCA’s stated aim of the fair treatment of customers, but also of ensuring that proof of compliance was recorded.
“It is all about ensuring that you provide customers with meaningful choice, accurate information and consistency across your business. However, you also have to be able to prove that you are doing this.
“If you are not recording the right information, all the hard work you have done to become compliant will be wasted.”
Tew also said that technology which allows the tracking and recording of customer behaviour made collecting such evidence much easier.
“The vast majority of it is recorded automatically, [and] data includes the products they have looked at, the quotes they have generated, whether they have looked product information videos and more.
“All of this information would be easily available in the event of an FCA investigation.”