Microsite Alphabet Partner: Commission Disclosure

Dear Alphabet Partner,

Following the recent Court of Appeal ruling, we have made some necessary operational adjustments to ensure the continuity of our business.

We would like to take this opportunity to thank all our Partners for their swift adoption of the current operational requirements.

We are aware that there are a variety of opinions on this subject, and we recommend that anyone who has not already done so obtain independent legal advice.

As we move forward, we would like to invite you to attend one of two webinars on Monday, 18th November.

The sessions will be held at the following times:

Session 1: 11:00 am

Session 2: 12:00 pm

The purpose of these webinars is to provide you with an update on our current position and outline our vision for the future. It will also serve as an opportunity for you to ask any questions you may have.

Please note that the sessions are intended for Heads of Business or their delegates only. Formal invitations will follow this communication. Kindly only register for the session you plan to attend.

While there will be an open Q&A on the day, to help us tailor our content, please feel free to send any specific questions in advance to hollie.crumlish@alphabet.co.uk.

We appreciate your continued partnership and look forward to discussing the future.

Best regards,

Richard Chadwick                                 
Head of Indirect Sales

Hollie Crumlish
Broker Partnerships Manager

Dear Alphabet Partner, 

Our Chief Sales Officer, Ian Turner would like to provide you an update regarding the recent developments following the Court of Appeal judgement concerning Commission Disclosure. 

His message is available for you to view within the Alphabet Partner microsite within this page: 
https://www.alphabet.co/en-gb/microsite-alphabet-partner-communications 

We would like to thank you for your continued support during this time and rest assured we will continue to keep you updated with any further developments over the coming days. 

We appreciate your patience whilst we implement these urgent changes. 

Kind regards, 

Richard Chadwick 
Head of Indirect Sales Alphabet

Dear Alphabet Partner,

Thank you for your patience whilst we made necessary adjustments to Icon which will be available from Wednesday 30th October. 

Following the recent decision of the Court of Appeal on 25 October, we have made the following changes:

We have set a standard total fixed commission of £750, regardless of whether the customer is regulated or unregulated. SMR commission will remain and there will be no other additional commission payments. Until further notice, we will be unable to pay commission on extensions. 

From 30th October 2024 onwards, all contracts will require a commission disclosure and consent form which are attached.  Please note that there is a different form for regulated and unregulated customers.

The commission disclosure and consent forms can be printed on your headed paper. Please update the form to show your business name where highlighted. Where possible, please keep all wording on one page. Please note that the finance commission amount disclosed must include CCR for any existing quotes. The commission displayed in Icon is always exclusive of VAT on both regulated and unregulated proposals.  Please show the VAT inclusive figure to regulated customers.

For future contracts, the commission disclosure and consent forms must be signed by the customer prior to the signing of their finance agreement. However, we understand that this will be signed afterwards for all current pipeline business but you should obtain this as soon as possible is the customer journey. 

We will be unable to proceed with any agreement where the customer has not consented to the commission disclosure. The commission disclosure and consent form should be signed by the same authorised signatory who is signing the finance agreement.

For clarity:

1. Icon proposal status: Vehicle delivered before 30th October but delivery documents not uploaded

   Action: Payout will continue, upload all your documents.

2. Icon proposal status: Vehicle delivered after 30th October but delivery documents not uploaded

   Action: Must upload disclosure document with delivery paperwork. 

Please note that any changes made to any existing quotes or proposals will recalculate the commission to £750 and we will not be able to match back. 

We appreciate your patience whilst we implement these urgent changes.

Kind regards,

Richard Chadwick 
Head of Indirect Sales Alphabet

Dear Alphabet Partner

On Friday 25 October the Court of Appeal handed down a decision that has significant implications across the finance industry and beyond, and with immediate effect.

In order to comply with the Court of Appeal decision, there are some immediate changes we need to make to our products, business processes, customer disclosures and customer consents regarding the payment of commissions.

To provide you and our customers with the required support to take delivery of their vehicles in the immediate short term, and to ensure that we do not face a period of possible closure, we will implement a simplified product set up (single rate, single commission) and an interim manual solution for all new business, ensuring that we are able to capture the required customer commission consent.

To be able to implement the changes and train you and our employees on these changes, we will temporarily suspend the underwriting and payout of new business for one day - Tuesday 29 October) - and recommence on the morning of Wednesday 30 October. 

With immediate effect, any payout/delivery pack not yet received will need to follow the new process from Wednesday 30 October to comply. This will in many cases require the customer to be requoted (more information to follow tomorrow in this regard). Whilst we understand that business continuation is critical for both you and your customers, this is necessary to minimise the risk of non-compliance with the Court of Appeal decision, both for you and for us. Full details of the changes required will be communicated to you on Tuesday 29 October to enable you to make the necessary changes.

We apologise for the inconvenience that this will inevitably cause you and your customers. We can assure you that the decision was not taken lightly and we are looking to keep the disruption to an absolute minimum.

If you have any questions please contact your RDM.

Thank you for your continued support.

Kind regards,
Alphabet Partner Team