Introduction and Summary
The Financial Conduct Authority (FCA) seeks to intervene in appeals involving Close Brothers Limited, FirstRand Bank Limited, and motor finance.
The FCA aims to provide the Court with insights on interpreting its rules, the interaction between private law remedies and the regulatory framework, and the broader motor finance market context.
Background to the FCA’s Interest
The FCA regulates the financial services industry under the Financial Services and Markets Act 2000 (FSMA), including consumer credit activities like motor finance.
There are numerous pending County Court proceedings and consumer complaints related to commissions paid to motor dealer brokers.
The FCA has been investigating the motor finance market, focusing on compliance with rules about commission disclosure and treating customers fairly.
FCA’s Recent Work
The FCA has extended the time for firms to resolve motor finance complaints to December 2025.
The FCA banned discretionary commission arrangements in January 2021 and has been reviewing historical commission arrangements.
The FCA is considering whether to implement a market-wide consumer redress scheme.
Proposed Submissions
The FCA plans to address issues related to the relationship between equitable duties and the regulatory scheme, the merits of the disinterested duty, the lender’s role, the concept of secrecy in commission disclosure, and the application of section 140A of the Consumer Credit Act (CCA).
Conclusion
The FCA seeks permission to intervene in writing and orally, emphasizing the importance of its participation in these proceedings to provide regulatory insights.