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The majority of dealers are aware of the upcoming new Consumer Duty changes being launched by the Financial Conduct Authority (FCA).
A total of 91% said they were aware, This is an increase of 28 per centage points compared to the previous quarter.
The data from Close Brothers Motor Finance comes ahead of the 31 July 2023 deadline to implement the changes.
Businesses will need to demonstrate that they’re continuing to act to deliver good outcomes for customers by the deadline of 31 July 2023 and beyond.
The data is showing a positive trend as more and more dealers become aware of Consumer Duty and develop a strong understanding ahead of the implementation.
Lisa Watson, director of sales at Close Brothers Motor Finance, said: “Over the coming weeks it’s vital that dealers and decision makers in the automotive industry develop an understanding of the new Consumer Duty changes, and the role they need to play as distributors.
“It’s heartening to see that nearly all dealers are now aware of consumer duty and understanding is growing fast.
“The new rules are there to ultimately offer more protection and better outcomes for consumers but will also encourage best practice from dealers.
“Failure to comply with the new rules could result in significant reputational damage, and potentially financial implications in the future if FCA guidelines are not adhered to. It would also mean that customers are not getting the required levels of service from their dealer.
“Close Brothers Motor Finance has been supporting dealers since March with information and assistance including educational, face-to-face masterclasses on the Duty and providing access to an online hub full of helpful information. This support will help dealers to implement any changes required to comply with the new rules. Dealers can also find out more directly via the FCA website.”