Dealerships: Your 15-hour Countdown to IDD Audit Has Begun...

The New Insurance Distribution Directive (IDD) requires you to prove dealership staff are competent with 15 hours of CPD training

Georgia Harbison

Georgia’s sales career and association with the automotive sector spans nearly two decades.

Following a brief period with Hays Montrose as a Senior Recruitment Consultant she joined Traffic Master in 2003 as National Sales Manager, selling satellite navigation and tracking to dealer groups throughout the UK.

In 2008, Georgia joined Intelligent Data Systems as National Sales Manager to drive sales of fleet risk products in the corporate and fleet sectors. Following a hugely successful four years, Georgia was part of the management team who sold the business to The AA in 2011 where she remained until 2015.

Georgia entered the world of learning as a UK Channel Manager in 2015 where she found her passion for learning before joining the management team at Intuitive Learning as Business Development Director in 2018.

Georgia has a desire for providing class leading, impactful and measurable solutions to customers and is passionate about delivering alternative digital learning technologies and immersive, engaging user experiences.

Outside work, Georgia is married with 2 sons with a pet count of 2 cats! Her hobbies include keep fit, running, festivals and wine consumption matched to calories burned by her other hobbies!!

Listen to Georgia Harbison's 12 min interview with on "Dealerships: Your 15-hour Countdown to IDD Audit Has Begun..."

Meet Simon, he's the head of Business in a large retail dealership. Simon knows that the buck stops with him when it comes to adherence to policy, compliance with legislation and auditing, which is why he is meticulous and all his staff can testify that he runs a tight ship. Simon's group has 14 sites and 700 employees. They have one L&D manager and one compliance manager. Between those two people they need to ensure that all 700 staff are trained, knowledgeable and competent across all FCA requirements and internal policies and procedures.

The recent introduction by the FCA’s Insurance Distribution Directive (“IDD”) means that all staff involved in the sale of insurance or insurance related products must now be able to demonstrate AT LEAST 15 hours of continuous professional development (“CPD”) per year.

It’s another compliance requirement that has far reaching consequences if Simon and his Business Managers get it wrong.

The company has a Learning Management System, where people can download and complete eLearning topics in their own time, but Simon’s worried if people truly learn the topic or if they just “go through the motions” to tick a box at the end of a module (which he suspects is the case). He’s recently read that typically, people will forget up to 80% of what they were taught in 30 days if there is no follow up, assessment or learning reinforcement.

With ad hoc audits and mystery shops a real likelihood, Simon’s worried that, despite initial training, his dealership could fail; he needs to know that ALL his people are up to speed and can pass any test of scrutiny not only for IDD but a plethora of other compliance requirements.

1. Insurance Distribution Directive

The New Insurance Distribution Directive (IDD) requires Simon to demonstrate his dealership staff are competent and have completed 15 hours of CPD training annually. Simon remembers the PPI Banks scandal of 2011, where at least three major bank groups were found guilty of mis-selling "ineffective", and "inefficient" payment protection insurance. The banks were forced to pay out £ 4.5 bn in compensation at the time and this really motivates Simon to ensure that nobody in his teams can be seen as mis-selling any of his dealership’s insurance products currently on offer. Also, if one of the team does mis-sell a policy, there's nothing Simon can do if that staff member claims they didn't know what they were doing was wrong – meaning once again, the buck stops with him.

2. GDPR and Information Security

Personal data security continues to be a massive global issue and consideration. Whilst Simon acknowledges the business has always maintained robust data and information security controls, he does have concerns that their policies may sometimes, unknowingly or deliberately, be compromised. The recent introduction of the GDPR, saw a Group wide training programme and whilst this increased employee awareness, Simon is keen to continually reinforce the message to avoid any potential data breaches and ensure that if audited, the group are revealed as a shining example of compliance.

3. Health and Safety

Short of quizzing each of his staff in person, Simon is at a loss as to how he is supposed to ensure that everyone fully understands and practices the group's required health and safety policies and procedures. What could he do to make sure that everyone is up to speed? Trying to get all staff into meetings or even organising briefing roadshows would be a logistical nightmare, cost to mention the productivity loss and cost of taking people away from their day jobs. Even then he still wouldn't be able to ensure that everyone has been briefed and that everyone would pass an audit. It's an impossible situation. If only there was a way for him to communicate the important information he needs to with all his staff via their laptops, smartphones or desktops.

4. Financial crime

It only takes one rotten apple to sour the barrel, as the old adage goes. Simon worries about the potential for financial crime within the group. Credit card, theft, scams, bribery, money laundering, embezzlement and computer crime. These are just a few ways that an unscrupulous opportunist could compromise the group. Simon is concerned that on the rare occasion that someone in the company is guilty of such behaviour, there is potential that whilst the individual would be held to account, the Group may somehow have to accept a degree of responsibility. Simon needs to be in a position to demonstrate that as a business, they had done everything reasonably possible to ensure the rogue employee had received training, understood the law, and knew his actions were wrong and unlawful, and that they could not be implicated in this person’s behaviour

5. WLTP and emissions

Another sensitive issue under public scrutiny is the WLTP and C02 emissions legislation. Particularly after a certain well-known vehicle manufacturer was found guilty of lying about the emissions of their vehicles. Known as the "diesel dupe", this scandal also proved to be an expensive mistake (also in the vicinity of £4.8bn, similar to the PPI Banks scandal). Simon wants to make sure that there is no room for error when his teams are discussing and sharing WLTP information with prospective and existing customers. He wants his teams (across all relevant business departments) to be knowledgeable, informed and most importantly, aligned in their responses. How can Simon make sure that all the stakeholders are brought up to speed about the complexities of WLTP and how this could affect the group? Without embarking on a huge training exercise, that may deliver mixed success, how can Simon deliver the knowledge his teams require across the entire business?

6. Recordkeeping

Regularly setting 15 hours aside for staff to become au fait with almost a dozen FCC required learning modules and internal policies and procedures is time spent away from them doing their actual jobs and running the business. One of Simon's peers from another dealership group has just given him a tip that will help him to sleep much better at night. There is a training and information retention product available that will allow Simon to be sure that not only have all his staff fulfilled their 15 hours learning requirement but that they really can remember everything that they have been taught! Moreover, rather than be away from their jobs or having to completed lengthy on-line modules, they’ll achieve their learning in less than 3 minutes per day, AND Simon will also be able to keep and access records of who has been trained in what and over what period of time and what their knowledge level is.

Talk to us about a training and retention solution that will give you the same peace of mind that Simon now enjoys.

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