BVRLA News Oct/Nov 2017

October/November 2017

www.bvrla.co.uk

The bimonthly newsletter of the British Vehicle Rental & Leasing Association

Pre-Budget plea for Chancellor to back company car market The BVRLA has written to the Chancellor ahead of this month’s Autumn Budget, urging him to consider the adverse implications of placing a further tax burden upon the company car market.

In the association’s submission to Mr Hammond, BVRLA Chief Executive Gerry Keaney draws parallels between the successive rise in business motoring taxation and the upward trend of people taking cash allowances to finance their own vehicles instead of opting for greener, cleaner, company cars.

The average new company car has lower carbon emissions than the average new car and the BVRLA believes that this tax hikeinduced drain away from company-provided vehicles has contributed to the recent increase in average new car emissions.

Keaney said: “Successive Budget announcements have seen the overall tax take from the business motoring sector rise sharply and this is now having a negative impact on average car CO2 emissions, which have risen year-on-year.”

The association has also urged the Chancellor to consider the economic and political consequences of raising tax from diesel company car drivers, who are often essential business users undertaking long and frequent journeys in vehicles fitted with the latest engine technology.

Government figures show that the number of company car drivers has remained static for the past seven years while the UK economy has grown consistently. The BVRLA believes that many potential company car drivers have chosen to finance their own vehicles in the face of a steep rise in company car benefit-in-kind tax rates. The corresponding period has seen a significant increase in demand for personal contract hire.

With 99% of the country’s 4.4 milllion commercial vehicles powered by diesel technology, Keaney emphasised that diesel still has an important role to play: “For as long as there is no other suitable cost-effective and practical alternative on the market, diesel powertrains will continue to play a vital role for transporting goods and people around the UK.” The submission to the Chancellor makes clear that punishing employers and their employees for using or selecting a diesel car would be wholly inappropriate and grossly unfair. u You can read BVRLA’s full submission to the Chancellor on the BVRLA website: bvrla.co.uk

Motor Finance Taskforce The BVRLA has responded to the Financial Conduct Authority’s creditworthiness consultation. page 5

The vehicle rental industry and terrorism

The BVRLA is working to mitigate the risks associated with the use of rental vehicles in terrorism. page 5

Inspection Programme

The BVRLA has been working closely with our inspection partners, CCAS and the AA, to enhance the inspection programme. page 6

Regime change afoot for FCA-regulated firms

The Financial Conduct Authority is tightening its rules on ‘approved persons’. page 7

BVRLA publishes diesel transition roadmap

The BVRLA has a blueprint for a cost-effective transition away from diesel vehicles in urban areas. page 9

Tour of GDPR Workshops The new General Data Protection Regulation (GDPR) comes into effect in May, marking the biggest overhaul of data protection for decades. page 10

Conference draws near

In November the BVRLA’s Industry Outlook Conference will take place in Nottingham, looking ahead to 2018. page 11

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Range of official fuel consumption figures for the Alfa Giulia range: Urban 33.6 – 53.3 mpg (8.4 – 5.3 L/100km); Extra Urban 61.4 – 80.7mpg (4.6 – 3.5 L/100km); Combined 47.9 – 67.3 mpg (5.9 – 4.2 L/100km). CO2 emissions 138 – 109 g/km.

Fuel consumption and CO2 figures are obtained for comparative purposes in accordance with EC directives/regulations and may not be representative of real-life driving conditions. Model shown is the Alfa Romeo Giulia 2.2 Turbo Diesel 150hp Tecnica at £31,035 OTR including metallic paint at £695.

CONTACT THE BVRLA TEAM Chief Executive Gerry Keaney 01494 545716, gerry@bvrla.co.uk Secretary to the Chief Executive Kate McLaren 01494 545709, kate@bvrla.co.uk Management Accountant Bharti Ladwa 01494 545708, bharti@bvrla.co.uk Accounts Assistant Melanie Richardson 01494 545722, melanie@bvrla.co.uk Director of Communications & External Relations Toby Poston 01494 545700, toby@bvrla.co.uk Research & Insight Manager Phil Garthside 01494 545717, phil@bvrla.co.uk Media Relations & Communications Manager Andrea Davies 01494 545710, andrea@bvrla.co.uk Marketing & Communications Executive Tamsin Stuczynska 01494 545707, tamsin@bvrla.co.uk Director of Member Services Nora Leggett 01494 545713, nora@bvrla.co.uk Events Manager Fran Hampson 01494 545703, fran@bvrla.co.uk Learning & Development Professional Duncan McMillan 01494 545719, duncan@bvrla.co.uk Member Services Executive Laura Birdsey 01494 545714, laura@bvrla.co.uk Director of Policy & Membership Jay Parmar 01494 545706, jay@bvrla.co.uk Membership Manager Greg Theaker 01494 545705, greg@bvrla.co.uk Compliance & Governance Executive Adam Holt 01494 545718, adam@bvrla.co.uk Compliance & Membership Co-ordinator Diane Alexander 01494 545720, diane@bvrla.co.uk CRM Data Manager Robert Burford 01494 545702, robert@bvrla.co.uk Senior Policy Advisor Patrick Cusworth 01494 545712, patrick@bvrla.co.uk Legal & Policy Executive Amanda Brandon 01494 545701, amanda@bvrla.co.uk

BVRLA News and other communications are accessible wherever you are

Gerry’s note: Technology keeps moving – so must the rest of us Five years ago, the BVRLA knew that anyone reading these words would have been doing so from a hard copy magazine posted to their address. Today they can be consumed in print, or online via a PC, smartphone or tablet. Some of you may even be hearing me in the comfort of your own car, dictated via Alexa or some other intelligent personal assistant.

This is just one example of how technology is impacting the BVRLA and its relationship with members. Businesses across our sector will have many similar examples. If you combine these changes with all the other economic, political and environmental uncertainty that is

out there, then business planning can become a daunting prospect.

We can’t do that for you, but we can share the insight from some of your peers across the industry. At our forthcoming 2018 Industry Outlook Conference, we will be doing just that as we publish our new Industry Outlook Report and hear from some of the sector’s most insightful leaders.

I look forward to seeing many of you there on 30 November. u

Gerry Keaney, BVRLA Chief Executive

British Vehicle Rental & Leasing Association River Lodge, Badminton Court Amersham, Buckinghamshire HP7 0DD

Conciliation Service Manager Sallie Catchpole 01494 545715, sallie@bvrla.co.uk

Tel 01494 434747 Fax 01494 434499 Email info@bvrla.co.uk Web www.bvrla.co.uk

Conciliation Service Officers 01494 545711

BVRLA News articles may be used copyright free by members provided that an acknowledgement is given.

Rick Connors Sarah Philp rick@bvrla.co.uk sarah@bvrla.co.uk

Honorary Life President Freddie Aldous Chairman Matt Dyer

© COPYRIGHT BVRLA 2017

Vice Chairman Simon Oliphant Honorary Treasurer Brian Back

Stephen Dix Mairead Sullivan stephen@bvrla.co.uk mairead@bvrla.co.uk

| October/November 2017

3

NEW MEMBERS

Welcome to the BVRLA family Since the previous edition of BVRLA News was published, the association has welcomed three Corporate Members, five Leasing Broker Members and three Associate Members.

Corporate Members Double T Enterprises LCV Hire Solutions

Associate Members Wallingford

ACRISS EEIG

Leicester

PJP Cambridge

www.acriss.org

Ely

Leasing Broker Members Athena Leasing The Clyde & Tay Group LetsTalkFleet Mad Sheep Leasing Online Motor Group

POD Point

Telford

www.pod-point.com

London

Carnoustie Salford Crewe

TomTom Telematics Amsterdam www.telematics.tomtom.com

Grimsby

BVRLA members buy nearly half of all new vehicles sold in the UK, supporting around 317,000 jobs and contributing nearly ÂŁ25bn to the economy each year

BVRLA welcomes Mairead to the Conciliation team The BVRLA is delighted to welcome Mairead Sullivan to the BVRLA Family. She joins the fivestrong Conciliation team as a Conciliation Service Officer and brings a wealth of experience, having worked in similar customer-care and dispute resolution roles.

Mairead spent over two years at Camelot, responsible for handling complaints and alternative dispute resolution cases. Her experience includes cross-departmental working with the training and governance areas of the business.

We are sure you will join us in welcoming her to the team. u 4

Cheltenham

BVRLA members operate a combined fleet of around 4.8 million cars, vans and trucks

Independent auditors give ECRCS the thumbs up Every six months the European Consumer Centre (ECC) carries out an audit of the European Car Rental Conciliation Service (ECRCS), which for the past seven years has been run by the BVRLA on behalf of Lease Europe in Brussels.

The purpose of the audit is to assess whether objectivity and fairness is being applied to case-handling and decision-making.

The most recent audit, carried out this summer, included an assessment of five cases selected at random.

The ECC reviewed each case file and provided feedback to the ECRCS, which concluded that the way the ECRCS handles cases and reaches decisions is both fair and equitable. u The ECRCS helps customers with unresolved complaints concerning cross-border vehicle rentals within Europe. Member organisations include Sixt, Europcar, Alamo, Enterprise, Hertz, National, Firefly, Avis and Budget.

October/November 2017 |

REGULATION & COMPLIANCE

Motor Finance Taskforce update

Discounted LCV Fair Wear & Tear Guides for sale

The BVRLA has responded to the Financial Conduct Authority’s creditworthiness consultation, which proposes changes to FCA rules requiring regulated firms to make a reasonable assessment of a customer’s ability to afford repayments, as well as assessing risk.

Ahead of the publication of a new edition in 2018, the BVRLA is offering copies of the Fair Wear & Tear Guide for Light Commercial Vehicles for 22p each to clear surplus stock. (Post and packing charges will apply). This is a great opportunity to source copies at a heavily reduced price.

The association and its members are very supportive of the proposals, understanding the importance of having a high-quality customer who can afford to meet their financial obligations.

The BVRLA has over 400 leasing broker and leasing members, an increasing number of whom are offering financial services to customers.

The association has therefore prepared a communications plan providing background into the FCA’s focus on motor finance and details the communications activities that will be delivered to support members with awareness and compliance. u You can read both the full response to the FCA creditworthiness consultation and The Reputation of Motor Finance Communications Plan on the BVRLA website.

A new version of the guide will be published next year, with the new BVRLA logo and refreshed content – but essentially the BVRLA Fair Wear & Tear Standard remains unchanged. u An order form can be found on the BVRLA website or contact Member Services Executive, Laura Birdsey.

SECURITY

Protecting the vehicle rental industry against terrorism The BVRLA continues to work with police and counter-terrorism authorities to mitigate risks associated with the use of rental vehicles in acts of terrorism.

particularly those who are experiencing difficulties.

The association is also currently talking to the Association of British Insurers (ABI) about the potential impact of terrorism-related liability costs on insurance premiums. Whether you purchase motor insurance on the open marketplace or are self-insured, the BVRLA would like to hear from members,

The issue of terrorism and the rental industry will be discussed in some detail at the BVRLA’s Industry Outlook Conference in Nottingham on 30 November and rental operational staff can attend at a special member rate.

To book a place email BVRLA Events Manager, Fran Hampson.

| October/November 2017

Please contact Amanda Brandon with your feedback. u

Using RISC database can mitigate risk The BVRLA RISC database contains details of over 7,000 individuals and companies who have been identified as a potential risk, based on the previous experience of rental and leasing organisations.

BVRLA members provide the information stored on RISC and they can use the system as part of their customer qualification process to flag individuals who have failed to adhere to terms and conditions in the past. FREE to use, this is a valuable resource for members and can help to avoid any unwanted custom. u Members can register online at www.risconline.com or contact Member Services Executive, Laura Birdsey.

5

REGULATION & COMPLIANCE

Inspection Programme update The BVRLA has been working closely with our inspection partners, CCAS and the AA, to further enhance the existing inspection programme to support member compliance.

Feedback from members has informed improvement ideas which will include the introduction of a new look advisory report to deliver a more rigorous approach. We hope to roll these out in January 2018.

As we enter the fourth quarter of the year, the BVRLA has so far this year

supported thirty-six new members with our Health Check programme, helping them to understand and adhere to the BVRLA Code of Conduct.

The top three trends from the leasing broker members’ reports have shown that Financial Promotions, Conflicts of Interest and Risk Assessment are the most common issues to be addressed.

FCA requirements state that regulated firms should have policies and procedures in place as well a register to record and maintain records.

The top three trends from the corporate members’ reports show that administration fees for such things as refuelling charges, damage handling and fines need to be clearer for customers.

If a vehicle requires AdBlue, this must be checked as part of the pre-rental check and evidence should be recorded. u You can find out more from Compliance & Governance Executive, Adam Holt.

Great to have a few pointers on important topics – it seems that the regulatory landscape continues to change and increase in complexity and such an event is useful in steering our own agenda on areas we might need to review or improve on to remain compliant PAUL BULLOCH, CONCEPT VEHICLE LEASING

The BVRLA was joined by 83 delegates and guest speakers at its Leasing Broker Forum held at Twickenham Stadium in October. The forum provided the opportunity for Leasing Broker members to listen to and engage in interesting debates and discussions relating to several key compliance areas affecting the sector, including competition law and GDPR. u

It was a good opportunity to share ideas and common issues faced in today’s more highly regulated industry TIM MCNALLY, WESSEX FLEET SOLUTIONS

The forum was really geared around bringing us all together as a group and improving market awareness and impending changes to the industry to ensure we are all prepared 6

JILL SIDEBOTTOM, FLEET ALLIANCE

October/November 2017 |

REGULATION & COMPLIANCE

Regime change afoot for FCA-regulated firms The Financial Conduct Authority (FCA) is tightening up its rules, replacing the current Approved Persons Regime with the Senior Managers and Certification Regime (SM&CR). The regime has already been operating in the banking sector for some time and will next year extend to the financial services sector.

This change will affect all FCAregulated firms including non-UK firms with permission to carry out regulated activities in the UK, and it will focus on three key areas: 1. The Senior Managers Regime 2. The Certification Regime 3. Conduct Rules Speaking about the expansion across financial services, the FCA said: “We’re extending the SM&CR to cover insurers and solo-regulated firms (those firms regulated only by us) and proposing some changes to the current banking regime. | October/November 2017

“The aim of the SM&CR is to reduce harm to consumers and strengthen market integrity by making individuals more accountable for their conduct and competence.”

The proposed Senior Managers Regime will require ‘senior managers’ to be FCA approved before starting their role. The FCA will set out which roles and functions are considered as ‘senior management’. Every ‘senior manager’ will be required to have a ‘statement of responsibilities’ making clear their individual responsibilities and accountabilities. Once a year firms will need to certify that ‘senior managers’ are suitable to do their job.

The proposed Certification Regime will apply to employees who are not considered to be ‘senior managers’ but whose role means that it is possible for them to do significant harm to the firm or its customers. These roles are called ‘certification functions’ and the FCA will set out which roles and functions fall into this category. Although the FCA will not need to approve these individuals, the firms will have a responsibility to certify a

person’s suitability to their role once a year.

The proposed Conduct Rules will apply to almost all employees who do financial services activities. Its intention is to drive up standards of individual behaviour and to set out what is expected from those working in the industry. It aims to improve individual accountability and awareness of conduct issues across firms.

The Treasury will set the timetable for the implementation of the new regime and a policy statement is scheduled for Summer 2018. u To support members with preparations for SM&CR, the BVRLA will be providing a series of updates, resources and learning programmes in 2018. To find out more, contact BVRLA Learning & Development Professional, Duncan McMillan.

The BVRLA Inspection Programme will start to include assessment of compliance to SM&CR once it launches next year. Any questions on this can be directed to BVRLA Compliance & Governance Executive, Adam Holt.

7

London Hilton Park Lane

The BVRLA returns to London’s West End for its Annual Dinner The BVRLA are proud to host the rental and leasing industry’s most illustrious social event of the year, where members and their guests can enjoy top-class food and entertainment.

Hosted again at the London Hilton, the event will provide members with the perfect opportunity to reward clients, colleagues and business associates with an evening to remember.

There will also be an awards ceremony recognising and celebrating many of the industry’s most talented individuals and unsung heroes.

Further details on the black tie event will follow and details about sponsorship packages and nominations for Industry Heroes are available from fran@bvrla.co.uk.

1 March 2018

bvrla.co.uk

RESEARCH & INSIGHT

BVRLA publishes diesel transition roadmap The BVRLA has published a blueprint for delivering a cost-effective transition away from diesel vehicles in urban areas.

Produced by Ecuity Consulting, the research paper is being used to support the association’s air quality policy engagement with national and local government.

Applying the same methodology used by government policymakers to assess their national air quality plan, the report provides a high-level blueprint for a managed transition that reduces diesel market-share in the most environmentally and economically effective way. It reaches four main conclusions: › The government should focus its

efforts on reducing diesel car use in urban areas. Around one-third of car use is on urban roads and electric and

hybrid cars represent an increasingly affordable alternative. › A steady transition away from using

diesel vehicles will enable the supply chain and consumers to move to alternative technologies without incurring too many costs.

› Government policy should focus on

trying to reduce car ownership instead of just choosing alternative vehicles.

A scrappage scheme that provides mobility credits for public transport, car club and car rental journeys could stimulate this behaviour change.

› The government needs to provide

a consistent clean air zone policy framework across the UK to avoid placing extra burdens or costs on people and businesses driving between urban areas.

“Diesel vehicles play an essential role in transporting goods and people around the country, but the emissions they produce on low-speed urban roads means they have no long-term future in our cities,” said BVRLA Chief Executive Gerry Keaney.

“We need a carefully blended set of incentives and restrictions that removes the oldest, most polluting diesel vehicles without crippling our economy or punishing people for decisions they have already made.

“The vehicle rental and leasing industry has a significant stake in this transition and we look forward to working with local and national government to deliver a workable solution.” u You can read the full report on the BVRLA website.

Leasing broker contracts rise by 10% The latest Leasing Broker Research published by the BVRLA shows that the total number of vehicles on contract is up 10% from the end of 2016 (Jan-Jun 2017), with the total number of new contracts in this period sitting at 50,140.

Total number of contracts is 287,683, a net increase of 26,030.

The sector continues to grow, albeit at a slower pace, and this growth appears to be driven largely by Personal Contract Hire (PCH).

The BVRLA carries out leasing broker research twice a year. It provides the industry with an understanding of the size, scope and scale of the leasing broker sector. The data includes market trends and activity within the broker community. u | October/November 2017

RESEARCH HIGHLIGHTS

40% of new contracts are contract hire 43% of all contracts are contract hire 55% of new car contracts in H1 2017 were PCH 38% of cars on contract are maintained 47% of cars on contract are regulated 67% of cars on new contracts are regulated

Contract hire share increased from 63% in 2016 to 66% The number of vans on fleet increased by 10% 27% of vans on new contracts are regulated 60% of vans have maintenance contracts One-third of new finance lease contracts are regulated

9

LEARNING & DEVELOPMENT

Tour of GDPR Workshops The new General Data Protection Regulation (GDPR) comes into effect in May, marking the biggest overhaul of data protection since the introduction of the Data Protection Act in 1998.

The cost of non-compliance will be high, with those found to be falling foul of the regulation being fined up to 4% of turnover.

To support members in preparation for the new rule change, the BVRLA has hosted a GDPR Seminar and published a series of helpful resources including YouTube videos and a module on the new e-learning platform. The association has also written an article to help increase awareness of the pending rule change: The BVRLA on Preparing for GDPR. Members can copy and re-use this to support awareness raising across their own organisations.

The association has now introduced eight half-day workshops, tailored specifically for members in the daily rental and leasing broker sectors.

The workshops will highlight key changes and provide tips on completing a data audit and achieving complaince quickly. u To secure a place at one of the workshops contact BVRLA Learning & Development Professional, Duncan McMillan.

Webinar provides another flexible learning resource The BVRLA has published a recording of its Introduction to Financial Promotions webinar that supports members with FCA compliance.

Attracting a record number of attendees, the original twenty-minute webinar, which was hosted by BVRLA Compliance & Governance Executive Adam Holt, proved extremely successful, with 71% of attendees who provided feedback rating the webinar as EXCELLENT. u Those who missed the webinar (pictured right) can view it now via the BVRLA YouTube Channel.

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FORUMS TECHNICAL & OPERATIONAL MANAGEMENT 2 November Birmingham RESIDUAL VALUE & REMARKETING 15 November Donington Park

COURSES SELLING CONTRACT HIRE 22-23 November Chesham BVRLA FAIR WEAR & TEAR 13 December Sutton Coldfield 7 February 2018 Sutton Coldfield INTRODUCTION TO THE VEHICLE FLEET INDUSTRY 24 January 2018 Chesham

WORKSHOPS GDPR FOR LEASING BROKERS 8 December (AM) Glasgow 11 December (AM) Amersham 12 December (AM) Wolverhampton 13 December (AM) Manchester Airport GDPR FOR RENTAL FIRMS 8 December (PM) Glasgow 11 December (PM) Amersham 12 December (PM) Wolverhampton 13 December (PM) Manchester Airport

For further information about BVRLA Learning & Development opportunities contact BVRLA L&D Professional, Duncan McMillan

LEARNING & DEVELOPMENT

SOCIAL & NETWORKING

Conference is nearly here On 30 November, industry colleagues from across all sectors of BVRLA membership will gather in Nottingham to attend the BVRLA’s Annual Industry Conference, which has this year been renamed Industry Outlook Conference to reflect the emphasis on looking ahead towards 2018.

The Conference provides an ideal opportunity for members to listen and debate the critical issues, opportunities and challenges likely to face the vehicle rental and leasing sector in the coming year.

Enterprise Rent-ACar UK; Jane Pocock, Managing Director at Vansdirect; James Taylor, Director at DriveNow UK Ltd; and Henry Brace, Managing Director at BT Fleet Solutions.

Get Social!

Stay up to date with our latest news by connecting with us through social media!

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The agenda will also feature dedicated breakout sessions looking at the threats and opportunities the industry faces next year on the following four topics:

@bvrla BVRLA

› Residual Value & Remarketing

@bvrla

› General Data Protection Regulation (GDPR) › Brexit

www.bvrla.co.uk/ videos

› Counter-Terrorism

The morning will centre around unveiling the findings within the BVRLA 2018 Outlook Report and a panel of senior executives from across the industry will assess the report’s findings and discuss what it means for the industry.

With over half the places already reserved, BVRLA members are encouraged to book now as places have now been released to wider industry members and journalists. The member rate is £240+vat. u

The panel will include: Tim Porter, Managing Director at Lex Autolease; Khaled Shahbo, Managing Director at

Bookings can be made via the BVRLA website or by emailing BVRLA Events Manager, Fran Hampson.

Top Tweet:

e-learning platform is a hit Just three weeks since the launch of the BVRLA’s new e-learning platform a dozen firms have already signedup to the facility, with subscription levels ranging from one member of staff to a hundred.

Users have been particularly impressed with the flexibility of the platform, which is compatible with mobiles, tablets, Macs and PCs. Feedback from users has been extremely positive. Dan Clark, Compliance Officer & Administrator for the Vehicle Partnership, said: “The service is convenient to use. Modules take around half an hour to complete and can be slotted easily into your working day and week. It’s good to have an overview of what we should be doing.

The information is really useful and helps | October/November 2017

us to do our jobs to the best of our ability.” u Find out more about the e-Learning system on the BVRLA website or contact BVRLA Learning & Development Professional, Duncan McMillan.

e-learning modules 1 2 3 4 5 6 7 8 9 10

Anti-Bribery Complaints Handling CONC: Consumer Credit Standards Data Protection Fraud Prevention Money Laundering Prevention Personal Conflicts of Interest Safeguarding the Vulnerable (Persons) Treating Customers Fairly Whistleblowing

Pick of the Post on LinkedIn:

11

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