Here’s a reminder what’s happened…

This is a summary of what we have learned over the last couple of weeks following the court of appeal decision in Johnson and others.

The Court of Appeal has handed down its decision in three combined appeal cases: Johnson v Firstrand Bank Ltd; Wrench v Firstrand Bank Ltd; and Hopcraft v Close Brothers Limited.  We thought it was important to pull together a summary on this landmark decision

Auxillias today announced that it has once again been recognised in the 2025 Chambers & Partners consumer finance UK rankings, for the second time in a row – and less than five years after it was founded. Chambers & Partners ranks the best lawyers and law firms in the country and worldwide and compiles lists of those that excel in the legal profession.

Big changes are underway in the lending world. The Court of Appeal’s recent decision in Johnson v FirstRand and related cases has left many in the industry rethinking their approach. Our team breaks down some practical steps firms can take now, from reviewing customer disclosures and managing conflicts to planning for potential claims. Now is the time to act, not to wait.

Read our guidance here and reach out if you’d like to discuss more.

Paul Godsmark has been appointed as consultant partner and head of advisory services at Auxillias. He has been with us for over two years, bringing a wealth of knowledge and hands-on experience in regulatory and compliance matters. His sharp focus on practical solutions and strong commitment to client success has made him a key part of our team.

We delighted that Robert Bell has joined our team as a compliance and training consultant for the Auxillias Academy. He will be primarily delivering a series of training programmes on important regulatory topics such as dealing with vulnerable customers and consumer duty training for clients, but broadening this scope as and when the need arises.

It’s the perfect season for fresh updates on the industry – and, as always, we have a jam-packed newsletter for you as a lot has been happening in our sector recently. You’ll see that we’ve reviewed the PS 24/2 final guidance on reinforcing protection for borrowers facing financial difficulties, the FCA’s response on the super complaint, the stop on sales of GAP insurance, and we’ve covered the Dear CEO letter on the FCA identifying some failings in AML and the necessary actions for improvement.

The Financial Ombudsman (FOS) has reached out to firms to verify their strategies for addressing complaints related to motor finance commission and their expectations from firms with complaints lodged with FOS. We provide a summary, look at what this means and what firms should do

Asset and motor finance board advisory services are now part of our wider offering to clients.  By partnering with IAA Advisory, this new service will help provide clear advice and independent insight, helping senior executives identify new business opportunities and act on them effectively. All board advisory consultants are highly experienced, senior individuals in the industry who are well versed in helping businesses navigate the complexities of strategy and the dynamics of industry change.

We have now launched ‘Auxillias Flex’, a flexible consultancy support service which provides clients with specialist advisors and consultants that can work as part of their team, whenever and wherever necessary.

The latest FCA Dear CEO letter, published on the 12 April 2024, is a reminder to motor finance firms to maintain adequate financial resources.

The pressure created by the 31 July 2023 Consumer Duty implementation deadline, on top of all the other challenges firms have faced, have meant that many firms may have found themselves preoccupied with ensuring that the core activities under their implementation plans have been fulfilled.

Hear Auxillias consultant, Frank Brown, provide tips on what to do as soon as you receive a Section 166 notice and how to manage the process to achieve a more favourable outcome.

Interactions with the regulator can take many forms – from participating in a thematic review, or receiving a tailored set of questions, to a full-blown s166 investigation. And in these interactions, firms seriously underestimate the extent to which their responses and actions will influence the outcome – both positively and negatively. Therefore, firms should take any regulator interaction seriously, seek professional advice where it is needed, and consider carefully the choices they make.

Caselaw in this area is prevalent and still mounting, and we have two further cases to report. The first one is Wrench v Firstrand Bank Ltd, and the other is Hurst v BMW Financial Services both cases were appealed by the Lenders and succeeded.

Whether or not your firm is directly subject to a s166 review initiated by the FCA in January in connection with historic discretionary commission arrangements (DCAs), if your firm is or may be affected by the issues, there are a range of very good reasons to get external advisors on board and supporting you right now.

If you have a pressing need for further support in light of the FCA review of historic commission arrangements, a critical compliance project that needs delivering or an unexpected senior vacancy in your team, we are in a position to support. A rare opportunity has arisen with one of our senior consultants now being available for an ongoing engagement or fixed term contract.

In this Consumer Duty Bulletin, we look at why the report needs to be done, what it should look like / must include and what firms should be doing in order to effectively report and meet the deadline.

Frank Brown has joined the Auxillias team as a redress and remediation consultant, primarily working with clients that are going through s166 Skilled Person reviews but also supporting the team that provides governance, risk and regulatory advice to businesses.