Viewpoint: It’s time to take the fight back to the regulators

Stephen Bassett, AFC’s community head for UK asset finance professionals, looks at the background to the FOS decisions over discretionary commission in vehicle lending. The news that Barclays is mounting a legal challenge to the Financial Ombudsman Service (FOS) ruling over unfair discretionary commission arrangements on a conditional-sale agreement for a car purchase is the first sign that lenders are challenging regulators to answer the obvious question about the motor finance market: what exactly have they done wrong?

Viewpoint: It’s time to take the fight back to the regulators

Apr 12, 2024

Stephen Bassett, AFC’s community head for UK asset finance professionals, looks at the background to the FOS decisions over discretionary commission in vehicle lending. The news that Barclays is mounting a legal challenge to the Financial Ombudsman Service (FOS) ruling over unfair discretionary commission arrangements on a conditional-sale agreement for a car purchase is the first sign that lenders are challenging regulators to answer the obvious question about the motor finance market: what exactly have they done wrong?

FCA warns motor finance lenders over costs of commission probe

The Financial Conduct Authority (FCA) has issued a warning to motor finance firms they must maintain adequate financial resources at all times, in light of potential claims arising from the regulator’s review of the historical use of motor finance discretionary commission arrangements (DCA). The regulator also reports that many lenders are struggling to provide the data required for its assessment.

FCA warns motor finance lenders over costs of commission probe

Apr 12, 2024

The Financial Conduct Authority (FCA) has issued a warning to motor finance firms they must maintain adequate financial resources at all times, in light of potential claims arising from the regulator’s review of the historical use of motor finance discretionary commission arrangements (DCA). The regulator also reports that many lenders are struggling to provide the data required for its assessment.

Barclays seeks judicial review of FOS decision

Barclays has become the first lender to launch a legal challenge against a regulatory ruling regarding discretionary commission payments, with the news the bank is to apply for a judicial review of one of the Financial Ombudsman Service (FOS) decisions which led to the current Financial Conduct Authority (FCA) motor finance review.

Barclays seeks judicial review of FOS decision

Apr 09, 2024

Barclays has become the first lender to launch a legal challenge against a regulatory ruling regarding discretionary commission payments, with the news the bank is to apply for a judicial review of one of the Financial Ombudsman Service (FOS) decisions which led to the current Financial Conduct Authority (FCA) motor finance review.

 

Legal & Regulatory News

Bank of England holds interest rates at 5.25%

Mar 21, 2024

The Bank of England has announced that the base rate of interest will remain unchanged at 5.25% as widely expected. Despite a surprise fall in inflation in February to 3.4%, the central bank's Monetary Policy Committee (MPC) chose to hold the rate at 5.25% for the fifth time in a row.

Auto Investigation

FCA probe drive Close Brothers to build up balance sheet

Mar 19, 2024

Close Brothers plans to boost its capital position by around £400m, having already scrapped this year’s dividend and placed next year’s payout under review, in response to continuing uncertainty around the potential financial impact of the outcome of the FCA’s review of motor finance commission disclosures.

Professional Accreditation

FLA accreditation: getting ahead of regulation

Mar 22, 2024

The FLA's asset finance broker accreditation scheme forms a key part of a move to ensure lenders and brokers step forward together to address concerns around best practice, minimising the risk of being caught on the back foot. This was the message from the first in a new series of Asset Finance Connect (AFC) webcasts for the UK broker industry providing an opportunity for brokers and lenders to ask their questions direct to the FLA team.