Regulated financial services offerings
Financial Services develops and distributes innovative vehicle-related financial products and services through importers, distributors, dealers, finance houses, call centres and digital channels.
Our financial services providers (FSPs) manage a complex range of financial services legislation aimed at making financial systems safer and better at protecting financial consumers. These regulations provide our customers with accessible redress when problems occur. Our ability to effectively implement new controls quickly and ensure compliance in an increasingly complex regulatory environment, enhances our stakeholder relationships.
What we are doing
Our Risk Management and Compliance Programme sets out customer due diligence processes, including anti-money laundering and anti-terrorist financing controls, for our businesses that operate as authorised FSPs. Due diligence processes are also in place for our businesses in the UK that operate as authorised credit brokers and insurance intermediaries.
In addition to our compliance governance structures, external advisers are engaged, if needed, to ensure all regulated products and services comply with applicable legislation. Regulated products, and their associated processes and policies are regularly reviewed to ensure that commissions and disclosures are transparent in the sales process.
In addition to our robust controls and governance structures, training is a critical enabler of meeting our compliance obligations. All employees subject to the FSCA's 'fit and proper' requirements receive the necessary training and continuous professional development (CPD) to achieve their accreditation to sell products. In the UK, the FCA's Certification Regime requires that senior managers with control and oversight be vetted for fitness and propriety. All other regulated employees in the UK receive training and CPD. Training is also delivered in both operations to help employees keep abreast of emerging industry trends and upcoming legislation. Training programmes are delivered face to face and online.
How we measure our performance
The Quality Assurance Department in Financial Services conducts quality and compliance audits to ensure adherence to the relevant regulations related to each regulated financial service offering. Outcomes are measured against set benchmarks, including regulatory, product and customer engagement skills.
In the UK, all regulated consultants and managers take competency assessment tests and are monitored by regional finance and insurance managers as well as a third-party compliance service provider. Fixed demands and needs processes ensure that sales agents ask the right questions to understand a customer's needs. Finance and insurance managers and the third-party compliance service provider also monitor dealership compliance to financial and insurance regulatory requirements, and regularly audit the sales transaction files across the UK dealership network.
Governance of ethics and compliance
2021 performance and looking forward
Group
- Compliance audits in South Africa and the UK have not identified any material concerns, and there were no incidents of non-compliance with regulated products and services.
Business specific initiatives and highlights
Compliance training (South Africa)
employees received training on POPIA and over 5 700 on Right to Repair guidelines
- Financial Services introduced additional monthly training for all employees to enhance their understanding of applicable regulations. 13 agents across the business segment achieved their regulatory exam qualification in F2021. Classes took place virtually and exams were written on-site at the Financial Services campus.
Compliance training (UK)
employees completed compliance training
- In addition to compliance training, employees were also tested on conduct rules, product knowledge and specialist automotive finance.
- We will develop our online and e-commerce channels in the UK to facilitate regulated sales.
