The Competition and Markets Authority (CMA) has formally clarified the legal status of rental and leasing firms in the vehicle supply chain as ‘end user’ post-Brexit.

The new legal status was confirmed in the Vertical Agreements Block Exemption Order (VABEO) guidance for those operating at various levels of the supply chain.

Following UK’s exit from the European Union, the ‘end users’ status remained unconfirmed.

The regulator’s new guidance also confirmed that the rental and lease agreements will continue to be exempt from block exemption regulations.

Additionally, the CMA has added provisions concerning the exchange of information in certain settings of the supply chain.

Furthermore, the regulator has clarified the role of brokers as online intermediation service providers (OISPs) in the distribution chain, and dual-role agents.

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By GlobalData

UK trade body BVRLA stated that the formal confirmation comes after inputs from the association.

BVRLA director of corporate affairs Toby Poston said: “The unequivocal clarity gives the sector protection at a time when it is under threat from disrupted supply, shifting business models and new technologies.

“The BVRLA has worked hard to influence this outcome to ensure the sector can benefit from long-established protections that had become uncertain and at risk. The next step on this journey is the Motor Vehicle Block Exemption framework, where we are again engaging with the CMA to protect member interests regarding the aftermarket.”

Last month, the trade body released a report stating that battery electric vehicles (BEVs) have become the most popular type of vehicles on its leasing fleet overtaking petrol vehicles.