What is changing?

FLA members, who make up the vast majority of UK vehicle finance providers, have agreed a new provision that has been added to the FLA's Lending Code.  The Lending Code outlines various contractual obligations lenders have as FLA members (conditions of membership).  One new provision, which aims to further raise industry professional standards and support compliance with the FCA’s new Consumer Duty, is that FLA members can only arrange finance through intermediaries (dealers and brokers) that are SAF Approved or ones accredited under an equivalent training and competence scheme.

 

What are the timescales?

Independent used vehicle dealers will be required to become SAF Approved or equivalent by 1 January 2025.

If you are already SAF Approved, we will contact you to obtain a copy of your SAF Approved certificate.

If you are using SAF but are not yet SAF Approved then you will need to ensure all customer facing staff involved in discussions (face to face, over the telephone or online) with customers on the subject of finance have passed the SAF Expert test.  Once they have, you can apply for SAF Approved certification.

If your firm has not yet registered to use SAF then please take steps to do so (see “How do I start setting up my staff on SAF?” below)

Once registered you will need to ensure all customer facing staff involved in discussions (face to face, over the telephone or online) with customers on the subject of finance have passed the SAF Expert test.  Once they have you can apply for SAF Approved certification. 

 

Using other finance training (SAF equivalent)?

If your firm is using alternative vehicle finance training that you or your training supplier believes to be equivalent to SAF Approved then the FLA will shortly be introducing a process to award equivalence status to that training.  To ensure you or your training supplier receives details of the equivalence process and requirements as soon as they are available please notify the FLA by e-mailing This email address is being protected from spambots. You need JavaScript enabled to view it..  Where it is more appropriate for your training supplier to receive the details, please ask them to email the same address as soon as possible.  Should the supplier of the learning programme not apply for equivalence or if the FLA are not able to award equivalence due to the requirement to be at the same standard of learning and testing as SAF Approved, you will need to become SAF Approved by the deadline relevant to your business (1 January 2025 for independent dealers).

Further information on SAF Approved Equivalence can found here:

 SAF APPROVED EQUIVALENCE - Criteria and process - Specialist Automotive Finance

 

What is SAF?

The FLA introduced Specialist Automotive Finance (SAF) in 2007 to help raise the standard of finance information provided in showrooms and online for the benefit of customers. SAF is currently entirely funded by FLA member finance companies who want to increase customer confidence in retail vehicle finance. There are over 40,000 industry staff registered to take the SAF Expert test.  To supplement the Lending Code provision, further details are provided below.

Further FAQs about all elements of SAF can be accessed here

Frequently asked questions - Specialist Automotive Finance

 

What is SAF Expert?

SAF Expert is online vehicle finance learning supported by an annual competency test for industry professionals.  It provides learning on all of the key categories of products provided by finance firms and the regulations they, and other motor finance processes, are governed by.  The training material and test is accredited by The London Institute of Banking & Finance.

For more information, please click here

SAF Expert - Specialist Automotive Finance

 

What is SAF Approved?

SAF Approved provides certification to companies who have put all of their customer facing staff, involved in discussions with customers on vehicle finance, successfully through the SAF Expert test.  It is an initiative primarily designed for intermediaries (dealers and brokers) to gain knowledge of vehicle finance, promote their expertise and credibility and give confidence to customers. 

For further information please click here

SAF Approved - Specialist Automotive Finance

 

How do I start setting up my staff on SAF?

For companies that are putting their staff through the SAF Expert training material and test, a guide for those setting up their account (administrator) is available here

SAF System User Guide 2024

 

Questions and Answers outlining the new FLA requirements

Further information can be found on the FLA website at the following link: Q&A outlining new FLA requirements - is your dealership or brokerage SAF Approved? - Specialist Automotive Finance

 

Support

Please contact your Account Manager should you require any further support or guidance.