Published by Global Banking & Finance Review®
Posted on December 3, 2025
1 min readLast updated: January 20, 2026
Add as preferred source on GoogleThe FCA is open to refining its motor finance redress plan based on feedback. The proposal could cost the industry £11 billion, with consultation ending December 12.
LONDON, Dec 3 (Reuters) - Britain's Financial Conduct Authority (FCA) could "adjust and refine" a proposal for a multi-billion-pound motor finance redress package if it sees convincing, evidence-based feedback during a consultation, its chief executive said on Wednesday.
FCA chief Nikhil Rathi told the FT Global Banking Summit the watchdog had received "lively" feedback on its proposals for a compensation scheme that it has estimated could cost the industry around 11 billion pounds ($14.8 billion).
The consultation ends on December 12.
(Reporting by Phoebe Seers, editing by Kirstin Ridley)
The Financial Conduct Authority (FCA) is a regulatory body in the UK responsible for overseeing financial markets and protecting consumers by ensuring that financial firms operate fairly and transparently.
Motor finance refers to various financial products that help consumers purchase vehicles, often involving loans or leasing agreements that allow individuals to pay for their vehicles over time.
A compensation scheme is a structured program designed to provide financial restitution to individuals or businesses that have suffered losses due to specific circumstances, such as regulatory breaches or financial misconduct.
A consultation in finance typically refers to a period during which stakeholders, including regulators and industry participants, provide feedback on proposed regulations or policies before they are finalized.
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