Services / F & I Management Services (FSP No 39822)
We know that most Dealer Principals hate having to comply with regulation that has very little to do with selling cars. But the second gross income that a dealership earns through its F&I’s, as a percentage of total income, is growing by the day.
Many dealerships have elected to ‘rent an FSP license’, to escape the regulatory net and indeed have done so for a number of years. But the Regulator has made it clear that these days are numbered.
Moreover, the conditions that are imposed by license holders on dealerships can be onerous, in many cases disallowing F&I’s the ability to give advice. It is well known that insurance is ‘sold’ not ‘bought’ so an F&I that is deprived of an advice-giving license is akin to employing a mechanic without hands. And to make things worse, the Regulator is proposing to cut commissions and allowing an advice fee to be charged to the customer. Of course, this will only be allowed if the F&I is registered to provide advice.
We have a solution to all these challenges. If you want to get the financial services regulator off your back completely but still want to earn full income from regulated second gross VAPS, this is what we will do for you:
- Put your F&Is on our license. Unless you collect premium, you will no longer need to be an FSP
- Pay you the full commission on everything your F&I sells
- Provide supervision to F&Is that need it; we have all the resources to do the job properly
- Automatically assess and monitor the ongoing fit and proper status of your F&Is
- Provide your F&Is with full training, including how to succeed in sales
- Provide on and off-the-job financial services education
- Provide CPD
- Ensure that all VAPS are placed with product suppliers chosen by you