There is already a legal challenge against the recently announced motor finance redress scheme, demonstrating the level of scrutiny around both its design and delivery.

On the same day the FCA confirmed the final motor finance redress scheme, four regulators announced a joint taskforce targeting poor practice by CMCs and law firms.

The FCA, SRA, ICO and ASA are now working together to tackle misleading promotions, weak claims, multiple representation and unfair fees. This is a more co ordinated response than the market has seen before.

Following our initial paper on the FCA’s final motor finance redress scheme we’ve now produced a second briefing focused specifically on the obligations placed on brokers and dealers. 

While redress is paid by lenders, the rules place significant and immediate responsibilities on brokers. This includes complaint handling, responding to lender requests, providing historic data and supporting redress assessments within tight timelines.

The FCA has now confirmed that it will proceed with a motor finance redress scheme and has published PS26/3 together with a public statement outlining its objectives and expectations. The FCA says the scheme will return £7.5 billion to consumers, with millions of claims paid this year and the vast majority settled by the end of 2027.

This includes Auxillias’ first read and a more detailed paper on the FCA’s final motor finance redress rules - setting out what has changed and what firms should be thinking about now.

The FCA has published its 2026 Regulatory Priorities for consumer finance. It reads like a clear signal of where firms will be tested over the next 12 months. The focus is on three areas: access to credit, support for customers in financial difficulty and complaints and redress. Across all of this firms need to evidence outcomes.

Earlier today the FCA and the Financial Ombudsman Service jointly published CP26/9, Modernising the Redress System. The paper is both a consultation and a part-policy statement, finalising aspects of last July's CP25/22 while introducing new proposals on how complaints are triaged, investigated, and resolved.

The FCA has launched a call for input on how its regulatory framework can help SMEs access finance. The exercise spans debt, equity, hybrid and alternative finance, and seeks views from SMEs, providers and distributors on barriers to finance, opportunities for future regulatory support, sector-specific issues and future trends such as open finance.

The appointment comes as lenders, brokers and dealer groups seek practical support on large-scale complaint reviews, conduct risk projects and remediation planning. We have seen a significant increase in enquiries linked to commission complaints and redress readiness, particularly from firms needing senior legal and operational leadership.

We will shortly be publishing a new board-level paper titled ‘The Board Blueprint: A practical guide to dealing with motor finance redress governance’, which is written for UK motor and asset finance boards and senior executives preparing for the FCA’s redress scheme. If you’re interested in receiving a copy, please let us know.

The FCA has published a new review on consumer understanding under the Consumer Duty, setting out what good and poor practice looks like in real terms. While this is not new rulemaking, it is a clear signal of how the FCA expects firms to evidence that customers understand their products, communications and decisions.

This morning the FCA issued an update on its proposed industry-wide motor finance redress scheme.  Final decisions have not yet been made but several changes are under consideration following more than 1,000 consultation responses.

On 24 February 2025, the FCA published feedback on good and poor practice in Consumer Duty board reports, following its review of around 180 firms’ first annual reports. The review is intended to shape firms’ next reporting cycle and underlines the FCA’s expectation that boards can evidence meaningful oversight of outcomes, not just implementation activity.

The FCA’s long-trailed regulation of Buy Now Pay Later is now confirmed. With PS26/1, Deferred Payment Credit (DPC) will fall within the UK consumer credit regime from 15 July 2026. This is not simply an authorisation exercise. The new rules reach into product design, disclosures, creditworthiness checks, arrears handling, governance and board oversight.

As firms move from consultation to implementation, many are facing pressure across data readiness, governance frameworks, MI, quality assurance, operational planning and regulatory evidence. Auxillias Flex gives firms flexible, senior resource to address these challenges while retaining ownership and control of redress delivery.

The government’s 2026 consultation proposes targeted reforms to the UK Appointed Representatives (AR) regime, including bringing ARs within the Senior Managers & Certification Regime (SM&CR) and strengthening oversight, while preserving the current broad scope of the AR regime.

On 4 February 2026, the FCA issued a commission-related ‘Dear CEO’ letter addressing a growing complication in motor finance commission complaints: customers who have appointed multiple professional representatives (CMCs or law firms) for the same claim.

Sustainability rules are shifting again but risk is not going away. We’ve pulled together a short update on what businesses should watch in 2026, from ESG litigation trends and PFAS regulation through to advertising scrutiny and reporting reforms.

A massive thank you to our clients, partners and everyone else who has supported us over the past 12 months. Have an enjoyable and restful festive period. We look forward to working with you in 2026!

As the year draws to a close, we wanted to share a short note of thanks and an update on what we’ve been working on at Auxillias.

We are delighted to announce the appointment of David Blake as head of compliance advisory, strengthening our senior team as demand grows for practical regulatory support across the motor, asset and consumer finance markets.