On Wednesday NFDA hosted our Future of Finance conference in Stratford-upon-Avon. Expert panellists and members were brought together to explore how last Friday’s Supreme Court ruling and other emerging challenges will shape the future of motor retail. Jonathan Kirk KC kicked off the event, delivering a summary of the Supreme Court’s judgment on the motor finance commission cases. The Court ultimately ruled in favour of lenders, finding dealers and brokers did not have a fiduciary duty to the consumer, but rather transactions are fundamentally commercial. Kirk detailed how NFDA’s written and oral submissions were central to the findings and said that it is unlikely dealers will face direct claims in future cases. Grant Thornton’s Automotive Business Consultant Owen Edwards was the next speaker, outlining a modest GDP growth expected at 1.2-1.4% – a lag behind other advanced economies. Edwards said new car sales are expected to remain steady at 1.91-2.05m as a result of new models and those of Chinese entrants. Two panels discussed pressing issues facing the industry. The first panel – ‘Understanding the Ruling’ featured Jonathan Kirk KC, NFDA F&I Advisor Paul Bentley, Sicsic Advisory Philip Salter and Law Professor Dr. Julius Grower. The experts confirmed no fiduciary duty fell on the dealers, redress is likely to target lenders and agreed that transparency is key for all future consumer relations. NFDA will represent dealer interests to the Financial Conduct Authority (FCA) and The Treasury. The second panel – ‘FCA Expectations & Compliance Strategies Post-ruling’ featured Nick McDonald, NFDA F&I Chair Steve Rowe, Richard Roberts, Tara Williams and FCA Consumer Finance’s Mark Burns. The group addressed questions from members, focusing on any implications of the FCA redress scheme. They confirmed the redress scheme could see unresolved issues play out in county courts if not addressed by the FCA. The FCA will clarify which firms may not be making provisions. Key takeaways from the event found: the Supreme Court ruling was positive for dealers, the FCA’s redress scheme is likely limited to discretionary commission arrangements and more than 100,000 Financial Ombudsman Service claims remain active, with the majority to be resolved with the Court’s decision. The panellists confirmed dealers can feel more confident since the Supreme Court ruling. They concluded by agreeing that the FCA should recognise the industry’s genuine care for its consumers, while appreciating that complexity is a core challenge for the authority.