July 31 2014.

The National Motorcycle Dealers Association (NMDA) is urging dealers to ensure they are ready to apply for Financial Conduct Authority (FCA) authorisation.

FCA authorisation will affect motorcycle dealers who currently provide consumer credit to their customers. The changes have come about with the transfer of regulator for consumer credit from the Office of Fair Trading to the FCA. The new regime is likely to be more time consuming for dealers as they will need to ensure they have procedures in place to be complaint with the FCA rulebook, and it is also likely to cost them more money in fees.

Motorcycle dealers should have been advised of the timing of the application slot they have in which to apply for FCA Authorisation. The first of these slots will begin in October.

Dealers should already be thinking about their application and considering the type of application that needs to be made. If they are an existing FCA authorised firm they will probably be applying for a ‘Variation of Permission’ rather than needing to make a full application.

Those who are not already authorised will have to make a full application but may be able to take advantage of becoming authorised with ‘Limited Permission’ which affords lower fees and reporting.

Stephen Latham, Head of the NMDA comments; “It is not too early for dealers to start their applications. Although an application cannot be submitted before the application slot opens, they can complete the application forms in advance, online. The application involves a considerable amount of background information which needs to be gathered. The vast majority of which can be done in advance.

“It is important that motorcycle dealers are prepared as, once their slot opens, they only have three months to submit, if this is missed or dealer interim permission ceases, dealers will have to make a new application. Whilst this is processed they will not be able to provide consumer credit to customers.”

The NMDA is offering support to dealer/members and will be holding a workshop in the Autumn. For more information and support contact louise.wallis@rmif.co.uk