NAMA NEWS JULY Dear Colleagues

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1 NAMA NEWS JULY 2017 Dear Colleagues This month we held a NAMA Executive meeting where we discussed a number of key industry issues. A report of the meeting is in the newsletter. Our next meeting is on Tuesday 3 October and will be open to all members and we hope to see you there. With the May 2018 deadline for compliance with the new General Data Protection Regulations (GDPR) fast approaching, it is crucial that businesses take the necessary measures to be compliant - failure to comply will result in harsh fines. Following a very successful workshop run by our retained solicitors, TLT, we are holding a further workshop on 15 September in Warwick more details can be found in this month s news. Please contact louise.woods@mif.co.uk for more information and to register your attendance. Last week, HM Treasury (HMT) published its latest consultation on interchange fees for debit and credit cards something which NAMA has been lobbying Government on to review. More details in this month s news. If you have any comments or views about the newsletter or NAMA, please contact me. Louise Walli Louise Wallis Head of NAMA Tel: louise.wallis@rmif.co.uk

2 NAMA CAR AUCTION REPORT JUNE 2017 NAMA has published its monthly car auction data report for June The report shows that overall in June: First time conversion rates increased by 1.3% to 75.4% from May - the rate was down by % on June 2016 Average selling value increased 4.2% from 5,176 to 5,392 Average mileage went down by -0.4% to 64,102 The first time premium was 95 up by 34 (55.7%) on last month Auction activity showed signs of improvement in June strengthening as the month progressed. The overall conversion rate improved by 1.3% - whilst this was significantly lower compared to some the highs seen in the first quarter, this is broadly in line with last year s performance. We anticipate the market to remain stable with good quality cars remaining in demand. The full NAMA Car Auction report is available from NAMA on request. NAMA COMMENTS ON HM TREASURY ANNOUNCEMENT Last week, HM Treasury (HMT) published its response to its recent consultation on interchange fees for debit and credit cards. The consultation covered a number of issues including surcharging customers for using a card. In the response, HMT said they would outlaw surcharging as they had proposed by the end of the year. This move is seen to be good for consumers, but will impact businesses that have relied on them to cover the high costs of card processing. This has been a particular problem for motor auctions since the new processing fees were introduced last year which effectively removed the 50p cap per transaction, and consequently increased the cost of processing significantly. A positive from the consultation response was the acknowledgment by HMT that some businesses such as motor auctions have been unduly affected by the changes to interchange fees, and they will be reviewing the situation to find a solution. NAMA has been lobbying Government to review the new interchange fee rules, which has been adversely affecting motor auctions. NAMA EXECUTIVE MEETING On Tuesday 11 July we held one of our regular NAMA Executive meetings in London. It was an interesting meeting with discussions on a number of industry issues. Grading

3 The introduction of independent auditing for grading was discussed. There is currently a proposal with the IMI for approval for a scheme that will audit auctions who use the NAMA grading. Audits will take place annually and ensure that auctions meet the strict criteria for using the grades. There was also some discussion around the NAMA training course at Stephenson college and what future training provision would be required. Search Engine The proposed search engine for auction stock continues to be developed with its first roll out due in the autumn. Membership NAMA currently has its highest membership ever with 82 individual business sites. At the meeting we welcomed John Pye Ltd into membership and accepted PJM for membership. Debit Cards The issue of debit card charges was discussed and how best NAMA should continue to lobby on the problem. More details on surcharging can be found in this month s news. GDPR The new General Data Protection Regulation was debated including its likely impact on auctions. As auctions hold significant data they are likely to be substantial affected by the new regulations and it will be paramount they are ready by May 2018 when the regulation comes into effect. To assist we are running a workshop on Friday 15 September for members. Please see further details in month s newsletter. In addition to these issues we also had an insightful and vibrant discussion on the current and future auction market. Our next Executive meeting will be held on Tuesday 3 October will be an open meeting where all members will be welcome to attend. If you would like to attend please let us know. GENERAL DATA PROTECTION REGULATIONS (GDPR) WORKSHOP INVITATION Did you know that significant changes to the General Data Protection Regulations (GDPR) come into force in May 2018? This will have a major impact on your business if you are not prepared for the changes. Following a very successful workshop held recently to outline the changes to GDPR and the requirements on dealers to comply with the rules, we are holding a further workshop as follows: Date: Friday 15 September 2017 Venue: Time: Hilton Hotel, Stratford Road, Warwick CV34 6RE 9.30 am refreshments, am workshop commences, 3.30 pm close (A buffet lunch will be provided) Our retained solicitors, TLT, will cover the following topics in relation to the changes to GDPR: Top tips on achieving GDPR compliance. A practical workshop covering areas of compliance.

4 An interactive feedback and information sharing session. A discussion on how we can ensure a common approach with manufacturers and suppliers. Places will be allocated on a first come first served basis as space is limited. The first place is free of charge and any additional places will be charged at 59 including VAT and subject to availability. If you would like to attend please contact Louise Woods louise.woods@rmif.co.uk NEW CAR MARKET DECLINES IN MAY, BUT REMAINS SET FOR A STRONG YEAR The UK new car market has declined for a third consecutive month with 243,454 new units registered in June. Registrations fell at a slower pace than in the previous two months, by -4.8%, as demand continued to stabilise following a record first quarter and the subsequent market turbulence caused by the recent changes to Vehicle Excise Duty. The market is now more in line with 2017 forecasts. Demand in the month was down across private, fleet and business registrations, recording falls of - 7.8%, -2.4% and -8.3% respectively. Meanwhile, the AFV sector enjoyed notable growth, with demand rising 29.0% to 10,721 units to maintain a record 4.4% market share for a second month. Petrol registrations rose by 2.5% and diesel fell -14.7%. Compact cars, typically powered by smaller petrol engines, proved most popular for all buyers, with superminis and small family cars accounting for almost 60% of the market. Small family cars and SUVs were the only two segments to register growth in June, up 6.0% and 11.3% respectively. Year-to-date, overall performance remains strong, falling slightly by -1.3% to 1,401,811 units and putting the market on track to meet 2017 forecasts. Fleet and business buyers drove demand across the first six months with registrations up 1.5% and 2.7% respectively in contrast to a -4.8% drop in private purchases, although almost 650,000 consumers have chosen a new car this year. Image source: SMMT

5 MONEY LAUNDERING REGULATIONS 2017 The Government s Money Laundering Regulations (MLRs) came in to force on 26 June. They update the UK AML regime to transpose the EU s 4th Money Laundering Directive. The EU s Funds Transfer Regulation also came in to force on the same date. The below contains details on some specific areas that we wanted to highlight following feedback from firms. VEHICLE SAFETY RECALLS: JUNE 2017 These are the vehicles, parts or accessories recalled by manufacturers for a safety reason during June 2017.

6 DVSA number reference Make and model Issue R/2017/010 Toyota: Verso & Avensis Airbag may not deploy R/2017/039 Nissan: Patrol & X-Trail Airbag may fail R/2017/096 Mercedes-Benz: A Class, B Class, C Class, E Class, GLC, CLA & GLA Starting current limiter may overload R/2017/107 Ford: Kuga Heated washer jets may overheat R/2017/118 Toyota: Yaris Front driver airbag inflator may rupture R/2017/119 Mercedes-Benz Bus: Citaro Passenger anti-trap mechanism may fail when pneumatic doors are depowered R/2017/129 Mercedes-Benz: Actros & Atego Vehicle safety system may incorrectly diagnose an imminent crash R/2017/130 Mercedes-Benz: Actros & Atego Steering wheel may come loose R/2017/133 Toyota: Land Cruiser EGR flange could corrode and crack R/2017/138 Land Rover: Range Rover & Range Rover Sport Passenger seat belt locking retractor may not function correctly R/2017/142 Isuzu: Artic Truck Steering rack/ steering column connector may detach R/2017/143 Jaguar: XE, XF & F-Pace Fuel hose may leak R/2017/145 Land Rover: Range Rover & Range Rover Sport Fuel hose may leak

7 R/2017/146 Mercedes-Benz: G-Class Steering column coupling may not be tight R/2017/153 Land Rover: Discovery Sport (Petrol & Diesel) & Range Rover Evoque (diesel) Locking ring may be incorrectly assembled R/2017/157 Mercedes-Benz: SLC/SLK (172) Brakes may overheat creating a risk of smoke and/or fire R/2017/158 Vauxhall: Zafira C 3rd seat row seats and 2nd seat row shoulder belts may be insecure R/2017/159 Mercedes-Benz: C-Class & E-Class Electric power steering motor defective R/2017/160 Mercedes-Benz: CLA & GLA Left and right window airbags may fail to deploy as intended R/2017/161 Mercedes-Benz: CLA & GLA Left window airbag may not deploy as intended R/2017/162 Mercedes-Benz: CLA & GLA Right window airbag may fail to deploy as intended R/2017/163 Mazda: Mazda3 (BL), Mazda5 (CW), Mazda6 (GH) Mazda6 Est (GH & GJ), Mazda CX-3 (DK) and Mazda CX-5 (KE) Tailgate may drop down without warning R/2017/164 Fiat: Tipo HB/SW Driver airbag may fail to deploy R/2017/165 Fiat: Fiorino Driver airbag may fail to deploy R/2017/167 BMW: 7-Series LWB Front brake efficiency may be reduced R/2017/170 Jaguar: F-Type One or both front indicators may fail R/2017/171 BMW: X1 Front passenger airbag may not deploy correctly

8 R/2017/175 Scania Truck: P, G, R & S Steering column may not have been secured R/2017/176 Citroen: C4 Cactus Bumper trim bonding may not be to specification R/2017/177 Mercedes-Benz: A-class, B-Class, E-Class CLA & GLA Airbag may not deploy correctly R/2017/179 Mercedes-Benz: A-Class, B-Class, CLA & GLA Vacuum line brake booster may break R/2017/184 Peugeot: Traveller & Expert 4 Air conditioning compressor support mountings may not be to specification R/2017/185 Citroen: Spacetourer & Dispatch IV Air conditioning compressor support mountings may not be to specification R/2017/188 Volvo Car: XC90 Rear passenger seat belt pre tensioner may not be to specification RCOMP/2017/004 Segway Inc. Off Board Charger for Personal Transporter Charger may be incorrectly wired RCOMP/2017/005 Sargent Electrical Services Ltd: EC155 Printed circuit board may overheat RCOMP/2017/008 Belron: Autoglass Windscreen Windscreen may not be correctly fitted RM/2017/014 Ducati: Multistrada 1200 Enduro Suspension may fail RM/2017/016 Betamotor: ALP 4.0 / M4 Front suspension forks may crack RM/2017/018 Moto Guzzi: V7 & V9 Fretting between ABS and secondary brake may cause loss of braking system

9 LEGAL UPDATE Employment Tribunal Fees Supreme Court Decision In an important decision announced this this month, the Supreme Court has allowed an appeal by the Trade Union, Unison. It has ruled that the Employment Tribunals and the Employment Appeal Tribunals Fees Order 2013 (which led to a 70% reduction in claims) is unlawful and will be quashed. Unison had argued that fees prevented workers getting access to justice. In the main Judgment, the Supreme Court noted a contrast between the level of fees in the Tribunal, and the small claims County Court (where it is very much cheaper to bring a claim for a small sum of money). Lord Reed emphasised the importance of the rule of law and the specific statutory rights granted by Parliament may not be reduced by statutory instrument from a minister. He relied on the fact that Tribunal cases are important for society as a whole, not just the individuals involved. Baroness Hale gave a separate short Judgment on the indirect discrimination aspects of the fees regime. She concluded that it was indirectly discriminatory to charge higher fees for type B claims (which include discrimination claims) than type A claims. Comment The Supreme Court s decision throws everything up in the air somewhat and there is some uncertainty about what will happen next. However for employers the headlines would appear to be: It is unlikely that the fees regime will be abolished entirely. It is probable that the Government will issue a consultation paper and then bring in a new fees regime, with fees at a lower level and/or involving a fee payable by the employer when the employer lodges its defence (response form); It is likely to result in an increase in Tribunal claims over the next few years, so employers will face increased litigation. It may also be necessary for the current Tribunal rules to be re-written. The Supreme Court has made it clear that all fees paid between paid between 2013 and now will have to be refunded by the Lord Chancellor s Department. The Government has already said after the ruling that it will take immediate steps to stop charging employment tribunal fees and refund those who have paid. This could of course become an administrative nightmare as many successful claims will have had fees ordered to be paid by the Respondent and there will probably need to be a manual search of all decided cases. Finally, there may also be arguments that potential claimants could argue that they were deterred from bringing a claim (in the last 4 years) because of the unlawful fees regime. In that case, Tribunals may decide that it is just and equitable to extend the time for bringing claims. If that happens, it is very difficult to see how the Tribunal system would be able to cope, as it has been significantly scaled down and reduced in size since This is a developing story, so look out for future updates as we know more. Motor Industry Legal Services (MILS)

10 DATES FOR YOUR DIARY Executive Meetings 2017 Tuesday 3 October NAMA AGM April, Lisbon, Portugal