FCA publishes final motor finance Supreme Court submissions

As the appeal against the Court of Appeal Decision in Johnson v FirstRand Bank Limited, Wrench v FirstRand Bank Limited and Hopcraft v Close Brothers has begun in the Supreme Court, FCA has published its final submissions to the Court.

By its intervention, FCA hopes to assist the Court in its understanding of the legal landscape relevant to the appeals. FCA also states that the Court has an opportunity to provide authoritative guidance in respect of the tort of bribery, the law on secret commissions, and s. 140A of the Consumer Credit Act 1974 (CCA).

In summary, FCA explains that its position as regards the subject of the appeal falls between that of the Appellants and the Respondents, specifically:

• that the sweeping approach of the Court of Appeal in (effectively) treating motor dealer brokers as owing fiduciary duties to consumers in the generality of cases goes too far; but that
• FCA would respectfully suggest that a degree of caution should be taken before supporting the Appellants in a wholesale jettisoning of the tort of bribery and/or the ‘disinterested’ duty, as that may leave a lacuna in the law and lead to the distortion of established principles.

FCA then goes on to address each of the regulatory framework, legal and equitable principles and the CCA.