FCA updates on motor finance review next steps

The FCA has said that it no longer plans its proposed announcement during May on its planned next steps in its motor finance commission review. Instead, it will confirm within 6 weeks of the decision of the Supreme Court following the hearing scheduled for 1-3 April (and in which the FCA has been granted permission to intervene), whether it will be proposing a redress scheme and, if so, how it will take it forward. It feels that a redress scheme would be better for both consumers and firms than a complaint-led approach, if the conclusion from the Supreme Court decision is that many customers have lost out as a result of widespread failings by firms.

Depending on the Supreme Court decision, the FCA may also consult on changes to its rules.