Supreme Court grants permission to appeal in key commission disclosure case

The Supreme Court yesterday confirmed, after consideration of the applications filed by FirstRand Bank and Close Brothers, that it has granted permission to appeal in the recent Johnson, Wrench and Hopcraft cases which tore up the rule book on commissions disclosure.

This is huge news for our industry which has understandably been grappling with unprecedented uncertainty in the wake of the Court of Appeal’s decision, which was handed down just over six weeks ago. It is encouraging that leave to appeal has been granted on public interest grounds, and we know that beyond the appellants, a number of industry participants and the FCA itself had also written to the Supreme Court to support an appeal being allowed (or, in the FCA’s case, to at least support rapid resolution of the legal uncertainty created by the decision).

Of course, this does not change anything for firms right now; the changes firms have made to their commission disclosures and consent processes need to stay in place. Just because leave to appeal has been granted, does not necessarily mean the Court of Appeal’s decision will be overturned; until the case is heard and judgment handed down, the current uncertainty will remain.

Nevertheless, to have confirmation that an appeal will be allowed this side of Christmas is a positive step, and we can hope means that the full appeal at least has a chance of being listed for and heard in the first half of 2025 - in Hillary Term 2025 (see here for dates) - to prevent the uncertainty for firms and associated issues dragging on.

In the meantime, if you would like to talk to us about the current position, whether in relation to commission disclosure and consent, managing complaints, or what this might mean for your firm moving into 2025 and beyond, please do not hesitate to get in touch.