To: Directors, Brand Managers, Group Managers, Dealer Principals, Sales Managers, Accountants

From: The Board of Directors & Jason Lewis

Date: 11 February 2013

SUBJECT: FSA COMPLIANCE & THE SALES PROCESS

Following a recent audit of our FSA compliance process carried out by Group F & I Manager Jason Lewis, it is apparent that the correct procedures are still not being followed.

Currently the Accountants are instructed to review the “Demands and Needs Statements” to ensure the customer has signed the document. However in many cases these are still being signed and dated AFTER the date of raising the order form in instances that clearly show that an insurance product has been sold on the order.

Therefore as from 1st February the Accountants will be checking the “Demands and Needs Statement” against the order form. If the Demands and Needs form is dated AFTER the order form date, the Sales Executive will not be paid commission on the insurance product.

The only exception to this is that if a customer was offered an insurance product at the time of vehicle sale (because the customers demands and needs indicated there was a need), but it was refused at that time.

If the customer subsequently decides to purchase an insurance product on delivery, this will be compliant with the FSA process provided the order form has been amended to show this and states clearly that the demands and needs were done at the time of the original order. In this instance, a note must be added to explain that the customer changed his mind on delivery.  If the customer initials/signs the note then the commission will still be paid.

Also, we have recently concluded our review and product selection for our group FSA/Sales Process. We will shortly be contacting you with dates of the roll out of this.

Please ensure that 2013 sees a renewed and sustained effort across all Sales Departments to ensure that we adhere to a tight and controlled Sales Process, and that we remain FSA Compliant at all times.

Thank you for your help in this matter.