The FCA has increased its scrutiny of Annex 1 firms, with around 900 information requests issued this year following contact with 300 firms in late 2025. This means the regulator has now contacted substantially all registered Annex 1 firms in the UK.

The FCA has published its feedback on the implementation plans submitted by motor finance lenders under the Motor Finance Consumer Redress Scheme. Its review gives firms worked examples of what good and poor practice looks like across five key areas, from identifying the right customer population and making case decisions through to redress calculations, quality assurance and handling multiple representatives.

The Financial Ombudsman Service has published its final policy statement on modernising the redress system, with key changes taking effect from 1 October 2026. The reforms introduce new grounds for dismissing complaints, including where a firm has already reviewed a matter in line with the standards that applied at the time or under a formal regulatory requirement. Changes are also being made to the fair and reasonable test, while the proposed registration stage has been deferred until at least April 2027.

The government’s plans for Consumer Credit Act reform are now much more defined and some of the proposed changes will have a major impact on motor finance firms. We have produced a new white paper looking at what is changing, what is staying and what firms can start preparing for now.

The FCA wants firms to understand what customers experience, not just what the data says. It has published further commentary on outcomes monitoring under the Consumer Duty, sharing examples of good practice and areas where firms still need to improve. The focus is on using information to understand what customers are experiencing, identify where things may be going wrong and take action before customer harm occurs.

The FCA has updated its good and poor practice paper on complaints and root cause analysis, adding new examples and practical guidance, particularly for smaller firms. The regulator reviewed complaints handling and root cause analysis arrangements across 40 firms and places considerable emphasis on the role complaints play in helping firms understand customer outcomes, identify customer harm and improve products, services and processes.

Consumer Duty, governance and data remain at the centre of the FCA's supervisory approach.

The FCA has published its latest consultation on phase 2 reforms to the Senior Managers and Certification Regime (SM&CR) .

The FCA’s motor finance commission consumer redress scheme is now the subject of formal legal challenge in the Upper Tribunal by four applicants: three captive lenders and  Consumer Voice Limited. The FCA’s scheme was established under sections 404 and 404A FSMA, and that the Tribunal is hearing challenges brought under section 404D(1) FSMA.

The countdown is on. From 15 July 2026, many Deferred Payment Credit (DPC) products - previously known as Buy Now Pay Later - provided by third-party lenders will become regulated by the FCA. With regulation day now just around the corner, firms should be carrying out a final readiness check.

The Upper Tribunal has made an order partially suspending the FCA's motor finance consumer redress scheme, on terms agreed between the FCA and the parties challenging it.

Court route confirmed as FCA scheme stays paused under Tribunal challenge

The FCA has published the findings from recent supervisory work looking at firms’ sanctions systems and controls, following the sharp rise in UK sanctions activity in recent years, particularly since Russia’s invasion of Ukraine.

Two-page practical guide for smaller firms, with a clear focus on Consumer Duty, financial promotions, complaints and governance. 

HM Treasury has now published its long-awaited policy statement on reform of the Consumer Credit Act, setting out the biggest proposed shake-up of consumer credit regulation in decades. While the full detail will come through future FCA consultations and rule changes, the direction of travel is now much clearer.

We have now expanded our financial promotions and website compliance review offering for lenders, brokers and other consumer credit firms as regulatory expectations around customer communications, digital journeys and financial promotions continue to increase.

On 11 June 2026, the FCA published ‘Further information for firms on the Motor Finance Compensation Scheme’, a 20-page technical document responding directly to queries raised by firms since the publication of Policy Statement PS26/3 in March 2026.  

On 8 June 2026, FCA Chief Executive Nikhil Rathi wrote to Dame Meg Hillier MP, Chair of the Treasury Committee, setting out the FCA's detailed position on the Motor Finance Compensation Scheme in response to questions raised by the Committee on 20 May 2026. 

The FCA’s proposed CONC 3 reforms could bring significant changes to the way lenders and brokers approach financial promotions, customer journeys and cost disclosures.

The FCA has finalised Phase 1 of its SM&CR reforms through PS26/6, introducing a wide range of changes aimed at making the regime more proportionate and operationally efficient while retaining individual accountability.