What this guidebook covers
In the UK, the car finance desk is a dealership's biggest regulatory exposure. Discretionary commission was banned in January 2021, the Consumer Duty came into force in July 2023, and the motor finance redress scheme (March 2026) covers an estimated 12.1 million agreements arranged through dealers. Every finance deal leaves a record.
This guidebook covers 7 standards with 21 checkpoints for dealers acting as credit brokers: FCA permission, commission and lender ties, fair value, affordability and accurate applications, finance ads, vulnerable customers and complaints.
The 7 motor finance standards
| Code | Standard | Ideal fix time |
|---|---|---|
| FCA-01 | FCA permission for credit broking | Immediate |
| FCA-02 | Commission and lender ties disclosed | Immediate |
| FCA-03 | Consumer Duty: fair value | 30 days |
| FCA-04 | Affordability and accurate applications | Immediate |
| FCA-05 | Finance ads compliant | 72 hours |
| FCA-06 | Vulnerable customers | 30 days |
| FCA-07 | Complaints handled on time | 7 days |
How to run an FCA motor finance compliance audit, step by step
- Confirm what applies. This covers dealers acting as credit brokers; lending directly or selling insurance such as GAP brings further FCA rules.
- Walk the site, standard by standard. Score each of the 21 checkpoints Pass, Fail or N/A. N/A only where the standard rules it out, with the reason recorded. Sample finance deal files and check the commission disclosure, the affordability evidence and the income figures against what the customer provided.
- Capture the evidence. A pass counts only with proof captured at the time of the audit: the FCA register entry, disclosure documents, deal files, finance ads and the complaints log.
- Give every fail an owner and a fix time. Record what you saw and who owns the fix. Each standard carries an ideal fix time, from immediate to 30 days, counted from audit submission (see the table above).
- Fix it, then prove it. The site fixes the cause and uploads proof of closure; the auditor checks the proof before closing the finding.
- Re-check at the next audit. Confirm closed findings stay closed, and look for the same fail at your other sites so one gap doesn't repeat across the network.
Who this guidebook is for
- Dealer principals
- Business and F&I managers
- Compliance officers
- Auditors
A reference document, not legal advice. Fines and rules change: check the current text with the regulator or your legal adviser before acting.
