Jonathan Davis was talking about compliance at the BVRLA's May Compliance Forum, held in London yesterday.
Chief Exec Jonathan Davis was one of the speaker's at the BVRLA's compliance forum held in London yesterday, talking about why compliance shouldn't be feared, but embraced. His view on compliance is that you should build it into everthing you do, so it becomes as automatic as breathing. His view is also that 100% is the only acceptable target when it comes to compliance. You wouldn't sell a car with only 90% of the componets in place fitted - only 100% will do. So why should automotive compliance be any difference? 100% may not seem easy to achieve, but the truth is, making compliance work in a world where regulations are changing doesn't have to be difficult, and Ingeni have always been focussed on making compliance easier and less stressful for our clients.
It's all about attitude. How we as human beings experience things is 1% what happens, and 99% how we react to what happens. If we look at what we know about the current regulatory situation (and yes, we're still waiting on that Supreme Court Judgement), we actually know a lot. And if we know a lot, we can plan how to react. Planning for change makes it easier to achieve and involves a lot less stress than not planning!
When it comes to compliance matters, the FCA always tells us what it is going to be focussing on, so what they prioritise should never come as a surprise. They tell us in advance, allowing us to look at those areas and giving us the time and space to make changes and improvements. Whatever the Supreme Court has to say about the Johnson, Wrench and Hopcroft judgement, we know that improved transparency is going to be here to stay. The industry has already put new procedures in place to ensure full transparency around broking arrangements, and if the FCA decides its rules and advice to dealers needs to be amended, we'll make those changes happen too. We know that there may be redress for discretionary commissions, but that's a problem we think the lenders are having to deal with - dealers don't have to worry about that. They just need to make sure that they apply the rules correctly going forwards.
So what should the automotive industry as a whole, and individual dealer be looking forward to? In Jonathan's view, everybody needs to get a lot more cyber-savvy, making sure they have the right data protections in place, with robust data authentication systems and good cyber insurance in place should the worst happen. We also need to look at the needs of our customers for the next 10-15 years. In a world populated by Digital Tourists (those of us who saw the birth of digital and the expansion of it into every area of our lives), and Digital Natives (those who were born into that digital world and have never known anything different, Digital Tourists will need help. Many older people don't have email, or can't navigate their way around the internet comfortably. And they absolutely can't get their heads around apps! But they still want to buy cars! Motor dealers needs to ensure that the customer journey, whether taken digitally or face-to-face in the dealershiop needs to be of equal high quality to enable all customers to be able to make a choice and enjoy a 'good consumer outcome' as we are charged to provide under Comsumer Duty.
Jonathan's had three key messages at the conference:
1. We know more than you think about what is coming - so we have time to plan!
2. Change is not a problem. Our attitude to problem is generally the problem.
3. A willingness to be teachable and take on change is the most important indicator for success in any business.
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