Speech by Therese Chambers, joint executive director of enforcement and market oversight, delivered at the City & Financial Global FCA Investigations and Enforcement Summit. Speaker: Therese Chambers, joint executive director of enforcement and market oversightEvent: City & Financial Global FCA Investigations and Enforcement SummitDelivered: 20 October 2025Note: this is the speech as drafted and may differ from the delivered versionReading time: 14 minutesKey messages:We expect firms to do the right thing, and where they do, we will work with them.We are pragmatic in our approach, but dig in when necessary.We want to play our part in creating an environment in which consumers and firms thrive.

Responding to the Government’s decision on reforming anti-money laundering and counter-terrorism financing supervision, Steve Smart, joint executive director of enforcement and market oversight at the FCA, said:'We recognise the benefits of an improved regime for anti-money laundering supervision. These changes will simplify the supervision of professional services, ensure more consistent oversight and help us identify and disrupt crime.'The FCA will work closely with the Government, the Office for Professional Body Anti-Money Laundering Supervision (OPBAS), Professional Body Supervisors, HMRC, the firms we will be supervising and others, as we work together to equip the UK to better fight financial crime. We can draw on our extensive expertise in this area to facilitate a smooth transition and ensure effective regulation.'The new regime will create enhanced opportunities for collaboration with key partners, including law enforcement, to tackle money laundering.'The FCA operates nationwide and we anticipate having a significant presence for this new regime in our offices outside of London.'

On 21 October 2025, the Financial Services Compensation Scheme (FSCS) declared Cheshire Neighbours Credit Union Limited in default, and it has stopped trading. Cheshire Neighbours Credit Union is a financial co-operative owned by its members. It is regulated by the Prudential Regulation Authority and the Financial Conduct Authority (FCA) as a deposit-taker under Firm Reference Number (FRN) 215692.Cheshire Neighbours Credit Union was in the process of winding down before being declared in default, and has attempted to contact all its members. Many members of Cheshire Neighbours Credit Union have already had their funds returned to them.The FSCS is stepping in to protect any members who've not already had their money returned by Cheshire Neighbours Credit Union. The FSCS will attempt to contact and return members’ money. Find out more on the FSCS website.Members who've not already received their funds from Cheshire Neighbours Credit Union and do not receive a payment from the FSCS by 30 October 2025 can contact the FSCS by: emailing enquiries@fscs.org.uk calling 0800 678 1100 (freephone) or +44 207 741 4100 (international) Lines are open Monday to Friday from 9am to 5pm. Be alert to scams All customers should remain alert to the possibility of fraud.If you are cold called by someone claiming to be from the credit union or the FSCS, please end the call and contact the FSCS directly using the contact details provided above.Find out more about how to protect yourself from the most common types of scams.

A recent survey found that two-thirds of corporate finance firms not required to submit financial crime returns may be falling short of money laundering rules. Corporate finance firms help businesses raise money by connecting them with investors or lenders and are vital to the growth and success of the UK economy – making effective financial crime controls essential.11% of responding firms reported having no documented business-wide risk assessment, which is a requirement under the Money Laundering Regulations. Without a business-wide risk assessment, firms are leaving themselves and the wider market vulnerable to money laundering, fraud and other forms of financial crime.Other findings from the survey that highlighted areas for improvement included:10% of firms stated they did not retain documented evidence of customer due diligence.29% of principal firms said they did not conduct financial crime risk assessments for their appointed representatives.6% of principal firms reported not monitoring their appointed representatives’ compliance with financial crime regulations or conducting on-site visits or audits.The FCA also identified examples of good practice. This encompassed firms regularly updating their business-wide assessments to reflect emerging risks, plus using detailed management information to strengthen financial crime controls. 97% of survey respondents also said that they regularly report financial crime concerns to senior management.Andrea Bowe, director of the specialist directorate at the FCA, said:‘Corporate finance firms play a vital role in the UK’s capital markets. Their exposure to money laundering risks means it is essential that they have strong, proactive controls in place. While some firms may be meeting expectations, many may be falling short of minimum regulatory requirements.'We are sharing our findings so firms can address any gaps in their control frameworks. We are also writing to potentially non-compliant firms to set out improvements they need to make.’The survey is part of the FCA’s wider strategy to fight financial crime. It is one of several initiatives planned over the next 5 years to strengthen oversight and raise standards across the financial services sector.Notes to editorsRead our survey findings (based on survey responses from 270 corporate finance firms).Under the Money Laundering Regulations, firms must maintain documented business-wide and customer risk assessments and ensure ongoing monitoring of client relationships.An appointed representative (AR) carries on regulated activity under the responsibility of an authorised firm, known as 'the principal'. Principal firms are responsible for making sure the AR is fit and proper and complies with our rules. They must have effective oversight of their ARs, and robust, documented controls that cover their ARs, including managing financial crime risks.In August 2022, the FCA introduced new rules to strengthen the appointed representatives regime, including stricter oversight, clearer supervision expectations and enhanced reporting. These came into effect on 8 December 2022.In September 2024, the FCA published examples of good and poor practice based on a review of how firms were applying the 2022 rules. The findings highlighted areas of improvement including self-assessments, annual reviews, onboarding processes and oversight of appointed representatives.Read more about responsibilities as a principal firm overseeing an appointed representatives.

Speech by Nikhil Rathi, FCA chief executive at Japan Weeks' opening reception. While most people might expect Japan and the UK to be quite different, I have found that we have quite a bit in common.Our countries share a love of timeliness, preparedness, queueing – and, apparently, Paddington Bear.The UK has loved seeing His Excellency Hiroshi Suzuki, Japanese Ambassador to the UK, bringing Paddington everywhere from London to Nagoya – via Shinkansen, no less.These are recent links.The relationship between the UK and Japan spans centuries.In 1858, we signed the Treaty of Amity and Commerce. I find that name fitting, as the spirit of friendship has endured.In the nineties, both countries held festivals showcasing the other’s culture.And during a recent visit to Japan, the Duchess of Edinburgh and Crown Princess Akishino planted an English oak tree at the State Guest House – one grown from a tree planted by Queen Elizabeth II in 1975.But the spirit of commerce has continued, too.Lloyd’s of London appointed its first agent in Japan in 1868.The Bank of Tokyo was the first Japanese bank to open in London, in 1884.In 1988, Sanko Gosei became the 100th Japanese firm to invest in the UK.In 1995, our then foreign ministers endorsed the UK/Japan Action Agenda, which offered concrete ways to bolster bilateral cooperation.It still underpins our relationship.In 2021, the UK-Japan Comprehensive Economic Partnership Agreement marked the UK’s first major trade deal as an independent trading nation.Today, Japan is one of the UK’s top investors, and trade between our countries has reached £31 billion.We welcome Japanese investment and participation in the UK’s global financial services centre, and honour the exceptional contributions made by Japanese firms throughout history.I believe we have the potential to become even greater partners, and the UK is committed to fostering our relationship.To instil in it chowa – what Hideaki Omiya described as ‘a spirit of harmonious partnership’ – by enhancing our financial cooperation across regulation, innovation and investment.

The FCA found examples of banks going to significant lengths to protect those at risk of romance fraud, but also uncovered missed opportunities to prevent these scams, which cost victims £106m last year. One of the cases the FCA reviewed involved a victim losing more than £428,000.Romance fraud is a growing financial crime, with cases rising by 9% last year. Victims are deceived into sending money to fraudsters who engineer false romantic relationships or friendships. Over 8 in 10 cases (85%) start online, particularly through social media and dating websites, suggesting platforms have a critical role to play in preventing fraud and reducing harm.In its romance fraud review, the FCA has set out measures banks and other payment firms can take to protect their customers. These include better detection and monitoring systems, staff training, early identification of signs of vulnerability, and compassionate aftercare.Key findingsIntervention and prevention are made difficult for firms because victims may be 'under the spell' of the fraudster and reluctant to accept they are being defrauded. In nearly half (42%) of the cases the FCA reviewed, victims did not disclose the true reason for making a payment when asked.Despite examples of good practice, there were multiple instances of firms missing opportunities to identify seemingly suspicious transactions. This indicated that firms could calibrate their monitoring systems to be more effective.A key area of improvement is for firms to ensure their staff are trained to spot red flags and critically probe customer explanations. This was not consistent across all firms.Many firms are providing a high level of support, occasionally exceeding the FCA’s expectations, through compassionate and tailored engagement, although this wasn't consistent across all firms.Steve Smart, executive director of enforcement and market oversight at the FCA, said:'Romance fraud is a vicious crime. All too often it is the vulnerable that fall victim. The impact – financially and personally – can be devastating. We recognise the challenge banks and payment firms have in combating this complex crime and this review aims to help them stay one step ahead of the criminals.'We also all need to be on guard so we can protect ourselves and loved ones by recognising the romance fraud red flags.'In one case in the FCA’s review, the victim made 403 payments to a fraudster over the course of a year, resulting in losses of over £72,000. The firm’s investigation acknowledged that it had not identified the sustained, out-of-character activity.Another case involved a victim telling bank staff they intended to send cryptocurrency payments to Iraq, claiming it was the only method accepted by their 'partner' in the military.The FCA also saw positive examples of banks and payment firms going above and beyond. One firm made 11 calls over a 6-week period to support a victim, demonstrating a commitment to breaking the fraudster’s hold and restoring customer confidence.Another responded with care to a victim who had recently divorced and was supporting a child undergoing cancer treatment. They proceeded to closely monitor the victim’s account.Romance fraud red flagsAlarm bells should ring if someone you’ve only met online asks for money or suggests investments. Never send money (or crypto assets or vouchers), no matter how sad their story.Look beyond the online profile. If someone asks you for lots of personal information, yet is unable to meet in person, then that could be a red flag. And use image checkers to see if their pictures can be found elsewhere.Get a second opinion from a family member or friend if the other person’s behaviour seems suspicious and you are being asked to make financial commitments you aren’t comfortable with.If you think you’ve fallen victim, report it to Action Fraud or Police Scotland if you live there. Speak to your bank as you may be able to get a refund of money you’ve sent – up to £85,000 – and it can help to prevent further losses. Notes to editorsRead the FCA's review on romance fraud.The FCA reviewed a sample of 6 firms, including retail banks and payment firms - some well-established and others newer to the market.Figures from City of London Police show that more than £106m was lost to romance fraud in the UK in the 2024/25 financial year. It is estimated that, on average, victims lost £11,222 each.Report scams to Action Fraud on 0300 123 2040 or via the Action Fraud website. If you live in Scotland, you should report to Police Scotland by calling 101, or contact Advice Direct Scotland on 0808 164 6000.The FCA enables a fair and thriving financial services market for the good of consumers and the economy. Find out more about the FCA.

We have opened an investigation into the Moneda Capital Group and a number of people associated with its companies. The group includes:Moneda Capital PLCMoneda Capital Asset Management LtdMCAM LtdVSD Capital LtdAnyone who has invested with these firms, and has not previously contacted us, should call our helpline and explain you are calling about Moneda Capital.

On 14 October 2025, the Gibraltar Financial Services Commission (GFSC) announced that Premier Insurance Company Limited (Premier Insurance) had entered administration. To avoid future potential claims not being fully covered, customers of the firm should consider securing alternative motor insurance as soon as possible.Read the GFSC announcement.Premier Insurance is an insurer authorised and regulated by the GFSC. It operated in the UK on a freedom-of-services basis which means some UK customers hold policies with the firm. Policies were sold in the UK through various insurance brokers via the firm’s UK-based intermediary, Premier Underwriting Ltd.On 14 October 2025, the company was placed into administration, following an application to the Supreme Court of Gibraltar.Freddie White and Bradley Chadwick of Grant Thornton have been appointed as joint administrators for the company.The company, which predominantly wrote car and motorcycle insurance policies for UK customers, stopped writing new insurance in January 2025.All customers continue to have motor insurance cover currently. However, depending on the type of policy you hold, some claims may not be covered to 100%.

The FCA is streamlining the rules on regulatory capital, also known as own funds, for investment firms. These rules make sure investment firms can absorb losses and maintain financial resilience during periods of stress.This move is set to help reduce regulatory burden and make it easier for firms to comply with the rules around regulatory capital. The rules do not change how much capital firms must hold.The FCA has removed outdated banking provisions and reduced the volume of legal text by 70% from approximately 44,100 to 13,200 words. These changes will better help firms understand their obligations and focus more resources on their core business, rather than navigating complex capital definitions. The changes take effect on 1 April 2026.The FCA is grateful for the positive support and engagement from industry to its consultation on the changes.The reforms align with the government's regulatory reform agenda, including the Edinburgh and Leeds Reforms and deliver on commitments made when the Investment Firms Prudential Regime was introduced in 2022.This work is part of the FCA’s wider strategy to support growth and underpin the continued competitiveness of the UK’s world-leading financial services. It is also part of the actions the FCA set out to support growth in its letter to the Prime Minster.

The FCA has secured US$101m in redress to UK and other non-US investors in a fund sub-managed by BlueCrest Capital Management (UK) LLP (BlueCrest) and imposed a public censure. Between October 2011 and December 2015, BlueCrest failed to manage fairly a conflict of interest created by its role in managing both an investment fund exclusively for the benefit of its partners and employees and a flagship fund available to external investors.BlueCrest’s management approved UK-based traders being moved from the external fund to work on the internal fund, in which they were personally invested and where they stood to benefit personally from those decisions. Disclosures to investors were insufficient and, at times, misleading. Investors were not told that a significant number of traders were moved to work on the internal fund. This affected investors’ ability to make informed decisions.The firm’s failure to manage fairly the conflict led to a sub-standard service for the external fund and its investors.Asset managers are trusted to make decisions for their clients. It is vital they have appropriate systems and controls in place to ensure conflicts of interest are managed fairly.Therese Chambers, Joint Executive Director of Enforcement and Market Oversight, said:'This redress scheme brings a positive end to a long-running case. BlueCrest put its own interest ahead of the external fund and provided a substandard service, which meant that investors lost out.'After many years of legal challenge, the FCA has now successfully secured a substantial US$101m for affected investors.'The redress scheme will be overseen by BlueCrest. Affected investors will be contacted on next steps by BlueCrest or a scheme administrator if it chooses to appoint one.Notes to editorsFinal Notice 2025: BlueCrest Capital Management (UK) LLP (PDF).Redress Scheme Rules. The redress requirement imposed by the FCA seeks to redress non-US investors that were not eligible to be compensated by the SEC’s Fair Fund.On 22 December 2021, the FCA published a decision notice against BlueCrest for conflicts of interest failings, which BlueCrest referred to the Upper Tribunal on 22 November 2021. That Decision Notice has now been superseded by the Final Notice above.On 21 June 2023, the Upper Tribunal granted BlueCrest’s application to strike out the FCA’s case on redress. The Upper Tribunal also refused permission for the FCA to introduce certain new allegations and issues in response to arguments raised by BlueCrest.On 20 July 2023, the Upper Tribunal granted permission for the FCA and BlueCrest to appeal its decision.On 2 October 2024 the FCA won its case in the Court of Appeal, which upheld the FCA’s power to require redress from firms and allowed the FCA to amend its case at the Upper Tribunal.On 15 January 2025, the UK Supreme Court granted BlueCrest permission to appeal the Court of Appeal’s decision. BlueCrest’s appeal was due to be heard by the UK Supreme Court on 12 and 13 November 2025. That appeal has been withdrawn.On 8 December 2020, the SEC announced that BlueCrest Capital Management Limited, without admitting or denying the SEC's findings, had agreed to settle charges arising from inadequate disclosures, material misstatements, and misleading omissions concerning its transfer of traders between two of its funds. BlueCrest Capital Management Limited agreed to pay disgorgement, prejudgement interest and a penalty, which was to be returned to US investors (plus any interest or earnings, less certain administrative costs).On 18 February 2022, the SEC issued its approved plan of distribution for the purpose of establishing a Fair Fund comprising the disgorgement, prejudgement interest and penalty which BlueCrest Capital Management Limited had agreed to pay to compensate US investors for management fees paid in connection with investments in BlueCrest Capital International Master Fund Limited’s two unregistered feeder funds, BlueCrest Capital International Limited and BlueCrest Capital L.P., between 1 October 2011 and 31 December 2015.The FCA would like to thank the SEC for their assistance in this matter.The redress scheme covers UK and other non-US Investors, meaning any person, or their lawful successor, who held shares, units and/or an interest in the external fund during the relevant period 1 October 2011 to 31 December 2015, excluding any person who was covered by the SEC’s redress scheme and other investors such as certain BlueCrest Executives.The FCA’s Principles for Businesses.

The FCA has set out plans to support tokenisation, to drive innovation and growth in asset management. The plans include guidance to provide firms with additional clarity to aid adoption of this new technology.The UK is a leading asset management hub, with around 2,600 firms managing £14 trillion of assets for UK and global clients. The FCA is committed to supporting innovation to help the sector continue to grow, as set out in its strategy.As the way people invest changes in the future, tokenisation – digital representation of assets on distributed ledger technology – can help asset managers to innovate and stay competitive. Tokenised products could drive competition and increase choice for consumers – and open up new ways to distribute funds, including to those new to investing.Tokenisation also has the potential to broaden access to private markets and infrastructure investment and ultimately help consumers access more cost-effective and personalised investments.It offers further opportunities to improve efficiencies and reduce the costs of fund management, for example, by lowering the costs of sharing and reconciling data between firms involved in operating or distributing the fund. The FCA has been actively working with industry to deliver these benefits for asset managers in the UK.Simon Walls, executive director of markets at the FCA, said:'Tokenisation has the potential to drive fundamental changes in asset management, with benefits for the industry and consumers. There are many things that firms can do under our existing rules and more that become possible with the changes we propose enacting now. We stand ready to design the next stage with the industry – this publication suggests a path. The UK has the opportunity to be a world-leader here and we want to provide asset managers with the clarity and confidence they need to deliver.'The FCA’s proposals include:Guidance on operating tokenised fund registers under current FCA rules through the UK Blueprint model.A streamlined, alternative dealing model for fund managers to process buying and selling of units in authorised funds, whether traditional or tokenised.A roadmap to advance fund tokenisation and address key barriers like using public blockchains and settling transactions entirely on the blockchain.A discussion on how tokenisation models could evolve and how regulation may need to change.This consultation also supports the delivery of the FCA’s roadmap for digital assets.Notes to editorsRead CP25/28: Progressing fund tokenisation.The roadmap for digital assets meets the commitment we set out in our letter to the Prime Minister on growth.Tokenisation is a method of digitally representing an asset or its ownership by recording it using distributed ledger technology (DLT). DLT is a system that stores transaction records across multiple locations at once, rather than relying on a single, centralised database.Read more on the FCA’s work on fund tokenisation.

We've been working with the industry to deliver open finance, which will give people control over how they manage their money and plan their finances for the future. In our letter to the PM in January, we committed to completing a variety of work to help accelerate digital innovation. This included using our powers to develop open finance, potentially prioritising small and medium-sized enterprise (SME) lending.To support this work, ahead of launching the open finance roadmap and strategy, we are announcing a major new partnership and launching 2 TechSprints.Smart Data AcceleratorWe asked KPMG and Europe Economics to carry out pieces of work on the benefits open banking and open finance could bring for consumers and the financial services sector.Open banking has laid important groundwork to make everyday banking and payments more diverse and accessible. Open finance has the potential to extend this to more financial services products and services.The report acknowledges there would be trade-offs regulators will need to consider, to balance the benefits and risks. These include data sharing arrangements, having the right technology in place to do so, and systems and procedures that encourage innovation while ensuring consumers remain protected.In September we launched our Smart Data Accelerator. This is an extension of our sandbox which will allow us to test real uses of open finance in practice.We are now collaborating with Raidiam to use their testing environment. This will allow firms participating in the Smart Data Accelerator to simulate and test data sharing. With this, firms will be able to develop smart data solutions that are safe, secure, and designed to benefit people and communities.SprintsWe are running 2 sprints between 17 November 2025 and 12 February 2026. One will focus on mortgages, and one on finance for SMEs.The sprints are now open for registration, so firms, industry, policymakers and international partners can register by 2 November at the links above.This follows on from the ‘Open Finance Sprint’, we ran in March, which brought together regulators, fintech companies, technology providers and consumer advocates. We developed ideas for how open finance could benefit consumers in everyday life and reported the outcomes in July.More informationRaidiam has been behind significant sharing developments around the world, including enabling open finance and open insurance in Brazil. Through the partnership, Raidiam will provide our Smart Data Sprint participants with access to a stable testing environment that mirrors real-world conditions.We support the government’s National Payments Vision (NPV) and ambition for the UK to be a world leader in open finance and open banking. We will continue to work with all the relevant stakeholders, including the government, and will set out a roadmap for open finance by March 2026.

Why T+1 mattersThe UK’s transition to a T+1 settlement cycle on 11 October 2027 will mark a fundamental shift in how financial transactions are settled.Under T+1, certain trades must be settled just 1 business day after execution. The change is designed to improve market efficiency, reduce risk and align the UK with global settlement standards.While the initiative is market led, we’ll play our part in making sure firms and trading venues are prepared. We’ve engaged with a range of market participants – including buy-side and sell-side firms, financial market infrastructures, and trade associations – to understand how preparations are progressing and where challenges remain.T+1 will reduce the time you have to process your transactions by around 80%.Planning early will be crucial. Many of the key deadlines to put recommendations from the Accelerated Settlement Taskforce (AST) into action are in 2026.

Payouts on an expected 14m unfair motor finance agreements could start next year, under an industry-wide compensation scheme proposed by the FCA. The FCA estimates people would receive around £700 per agreement, on average. Based on the number of consumers the FCA estimates could take part in the scheme, lenders could pay out £8.2 billion in compensation.Motor finance companies broke laws and regulations in force at the time by failing to disclose important information. This led to unfairness, with consumers denied the chance to negotiate or find a better deal and, in some instances, paying more for their loan. A compensation scheme is the best, most efficient way of getting compensation to those owed it and would make it simpler for those who would otherwise struggle to claim. Research commissioned by the FCA shows almost half of those aware of possible compensation, but who had not yet made a claim, (46%) cite a lack of clarity on whether a claim would be eligible as a barrier, and nearly a quarter (24%) say uncertainty about the level of compensation makes it less likely they would seek compensation. However, 81% of those who were considering making a claim say a compensation scheme would give them the confidence to do so.Nikhil Rathi, chief executive of the FCA, said:'Many motor finance lenders did not comply with the law or the rules. Now we have legal clarity, it’s time their customers get fair compensation. Our scheme aims to be simple for people to use and lenders to implement. 'We recognise that there will be a wide range of views on the scheme, its scope, timeframe and how compensation is calculated. On such a complex issue, not everyone will get everything they would like. But we want to work together on the best possible scheme and draw a line under this issue quickly. That certainty is vital, so a trusted motor finance market can continue to serve millions of families every year.'The scheme would be free to access for consumers and cost-effective for firms. Without a scheme, many cases would go through the courts or the Financial Ombudsman Service, resulting in significantly higher legal and administrative costs for firms and consumers, lengthy delays and uncertain outcomes for all involved. The FCA is now asking for feedback. It has sought to balance several principles to deliver an easy-to-access and simple-to-deliver scheme, providing fair compensation promptly while ensuring the continued integrity of the motor finance market. How the scheme would workThe scheme would cover motor finance agreements taken out between 6 April 2007 and 1 November 2024 where commission was payable by the lender to the broker. Those who are concerned they weren’t told key details about their motor finance arrangement – for example, about commission payments – should complain to their lender now if they haven’t done so already. Four in 10 (41%) of those who've had motor finance agreements and know about possible compensation are unaware they needn’t use a claims management or law firm to make a claim. However, there’s no need as people can submit their own complaint using a template letter (DOCX) on the FCA’s website. Those who choose to use a claims manager or law firm could lose a significant amount of any compensation owed. Once the proposed scheme goes live, lenders will contact those who have already complained. If they don’t hear back after 1 month, lenders will assume they should review the case. Those who have already complained before the scheme gets up and running are likely to receive compensation faster. Those who haven’t complained will be contacted by their lender within 6 months of the scheme starting. People will be asked if they want to opt-in to the scheme to have their case reviewed. They’ll have 6 months to decide. Those motor finance borrowers who don’t receive a letter – for example, because lenders no longer have their details and can’t trace them - will have a year from the scheme starting to make a claim. They will be able to do so by making a claim to their lender directly. If consumers don’t know who their lender was, there’s information on how to check on the FCA website. The FCA will run an advertising campaign to raise awareness of the scheme. People will only receive compensation under the scheme proposed if they weren’t told details of at least one of 3 arrangements between the lender and the broker who sold the loan, often a car dealer, which are found in some motor finance agreements:A discretionary commission arrangement, which allowed the broker to adjust the interest rate the customer would pay to obtain a higher commission.A high commission arrangement (35% of the total cost of credit and 10% of the loan).A contractual arrangement or tie between the lender and broker, which provided exclusive or near exclusive rights to lenders to provide credit. There could be rare circumstances in which a lender may be able to show that even if one or more of these features was undisclosed, that there was no unfairness. Where evidence is missing about what was disclosed, lenders must presume that they didn’t give borrowers enough information.The FCA will monitor if firms are meeting the proposed scheme's rules and will act if they’re not. If people disagree with their firm's decision, the Financial Ombudsman will be on hand to assess whether the scheme rules have been followed. Those with a motor finance complaint about inadequate disclosure of a commission or tie that doesn’t fall within the 3 features above – and who are therefore not owed compensation under the proposed scheme –would only get a different outcome from the Financial Ombudsman if it decides the scheme rules weren’t followed. People in this situation could still make a claim in court if they believed they had lost out. Consumers can choose not to take part in the FCA's compensation scheme and instead go to court, where they may get more or less compensation, based on the facts of their case. However, the outcome of a court claim is uncertain and accounting for legal fees they may pay, many consumers could end up with less. The FCA's scheme is also likely to be faster and simpler than going to court.Notes to editorsThe FCA's statement to the markets on the motor finance compensation scheme.The FCA's consultation on the scheme, along with supporting evidence and analysis.The FCA's statement dated 3 August 2025 announcing its intention to consult. The Supreme Court's judgment (PDF) in Hopcraft, Johnson and Wrench, dated 1 August 2025. Letter from Lord Forsyth (PDF) to the FCA regarding motor finance, dated 8 August 2025. And the FCA's response (PDF), dated 3 September.

We are consulting on an industry-wide scheme to compensate motor finance customers who were treated unfairly between 2007 and 2024. A compensation scheme is the best way to ensure consumers who have lost out receive fair compensation in an orderly, consistent, quick, and efficient way, while ensuring a well-functioning and competitive motor finance market.An alternative to a compensation scheme would require consumers to complain to firms, then to the Financial Ombudsman Service if dissatisfied with the firm’s response, or through the courts. This would result in significantly higher administrative and legal costs for firms and consumers, lengthy delays and uncertain outcomes for all involved.Why are we proposing a scheme?Many firms broke laws and regulations in force at the time by failing to disclose important information. Our extensive review, covering data from 32m agreements, found widespread failures to adequately disclose the existence and nature of commission and contractual ties between lenders and brokers.Of the agreements reviewed involving a discretionary commission arrangement (DCA) - where the broker could adjust the interest rate offered to a customer to obtain a higher commission - there was no evidence that the customer had been told about the DCA.On 1 August 2025, the Supreme Court found a lender acted unfairly – and therefore unlawfully - because of the high, undisclosed commission paid to the broker and the failure to disclose a contractual tie. On 17 December 2024, the High Court ruled that the Financial Ombudsman was entitled to find that a dealer and lender did not adequately disclose a discretionary commission arrangement and that meant the relationship between the lender and the borrower was unfair.Inadequate disclosure means consumers were unable to make informed decisions and less likely to negotiate or shop around. Consequently, many may have overpaid on car finance.There is now sufficient legal clarity to move ahead with a compensation scheme.

On 6 October 2025, Currency Matters Limited entered special administration under the Payment and Electronic Money Institution Insolvency Regulations 2021. Frank Ofonagoro and Allister Manson of Opus Business Advisory Group were appointed as joint special administrators. Currency Matters is authorised by the FCA to provide payment services to corporate and retail clients.On 1 September 2025, we imposed restrictions on Currency Matters on undertaking certain activities. A full description of the restrictions can be found on the Financial Services Register. The directors of Currency Matters concluded that the firm was insolvent and applied to court for a special administration order. The special administrators are responsible for managing customer claims against the firm and returning funds to customers where possible.If you have any questions regarding the special administration process, please contact the special administrators directly by emailing currencymatters@opusllp.com. For more information including FAQs, please see the joint special administrators' website.As the firm continues to be regulated by us, we will engage with the special administrators to seek the best outcome for customers.

Daniel Pugh has been sentenced to 7 years and 6 months in prison for running a £1.3m Ponzi scheme, following a prosecution brought by the FCA. Pugh, aged 35, set up a Ponzi scheme with another individual that netted over £1m. Run from his bedroom in Devon, the fraudulent Imperial Investment Fund (IIF) took money from 238 investors Pugh targeted largely through Facebook adverts. Investors were offered impossibly high returns of 1.4% a day, 7% a week or 350% a year.Pugh received £96,000 from the scheme. He used the money to support his lifestyle, including designer clothes, restaurants and withdrawing £18,000 in cash.The returns investors were promised did not materialise. Pugh duped investors into believing he was successfully trading and their money was safe. Even at the point he knew the scheme was collapsing, Pugh continued to try to attract more investors into the scheme.Steve Smart, executive director of enforcement and market oversight at the FCA, said:'Pugh made outlandish claims to hook in victims but in reality this was nothing more than a massive fraud. Fighting financial crime is a priority for the FCA. We will take action to ensure criminals face repercussions for their actions, including being denied access to any ill-gotten gains.'People’s online personas are often at odds with reality, as was the case with Pugh. Claims that sound too good to be true, are usually just that. Check the FCA Firm Checker before you invest.'In sentencing, His Honour Judge Weekes said there were 'persistent and knowing breaches of the regulatory framework' by Pugh and that any remorse for his actions came 'woefully late'.He added: 'The consequences for them [the victims] are marked and apart from financial loss they feel embarrassment.'The FCA is pursuing confiscation proceedings to deprive Pugh of the proceeds of his crimes and compensate the victims.Pugh was disqualified from being a Director of a company for 8 years, effective upon release from custody.A further individual is wanted in relation to the same offences.In the last 6 months alone, the FCA has secured criminal convictions in relation to 6 individuals for a range of financial crime offences including money laundering, insider dealing, and fraud.Unauthorised investment schemes pose a huge risk to consumers, and can offer little or no protection. Many will not realise their investments are at risk until it is too late. Use our FCA Firm Checker to see whether a firm is authorised by us.Notes to editorsDaniel Pugh’s date of birth is 19 April 1990.The FCA has attempted to contact investors who lost out. Anyone who was scammed by IIF and has not heard from the FCA should email ophainesconsumercontact@fca.org.uk.The FCA’s ScamSmart page has advice on how to spot and avoid investment scams.Mr Pugh was charged on 18 July 2023.FCA secures convictions against individual for £1.3m Ponzi scheme.The sentencing was made up as follows:Seven years and 6 months of imprisonment for conspiracy to defraud.Twenty four months of imprisonment for 2 offences of carrying on a regulated activity in the UK without FCA authorisation or an exemption, to be served concurrently.Twelve months of imprisonment for communicating an invitation or inducement to invest without FCA authorisation or the content of the communication being approved by an authorised person, to be served concurrently.The FCA enables a fair a thriving financial services market for the good of consumers and the economy. Find out more about the FCA.

We will issue a statement to the market and publish our consultation on a proposed motor finance redress scheme, along with supporting evidence and analysis, shortly after markets close on Tuesday 7 October 2025.

The FCA, Solicitors Regulation Authority (SRA), Information Commissioner’s Office (ICO) and the Advertising Standards Authority (ASA) are joining together to tackle misleading advertising and inadequate information provided by some claims management companies (CMCs) and law firms working on motor finance claims, and the risk that excessive fees are charged to clients. Alison Walters, director, consumer finance, at the FCA, said:'Misleading advertising and inadequate disclosure have meant that people are signing contracts with some firms without the facts. When they try to exit, they face high fees. We’re acting where we see bad practice and, through our own advertising, we’re ensuring consumers can make informed choices.'Paul Philip, chief executive of the SRA, said:'The risks and issues facing consumers in this area of the market are unprecedented, and we are using all the levers at our disposal to protect consumers, identify poor practices and hold law firms to account.'Usingpowers under the Consumer Rights Act 2015 and, for the first time, under the Digital Markets, Competition and Consumers Act 2024,the FCA, working closely with the SRA, has required 9 law firms to provide information about their exit fees. Two FCA regulated CMCs have agreed to change their exit fee policies.Two others have agreed not to take on clients or to advertise until they’re able to show the FCA they comply with FCA rules. We’re expecting to write to FCA regulated CMCs involved in motor finance claims this week to reiterate our expectations.The FCA’s increased proactive monitoring has led to the removal or amendment of more than 740 misleading adverts by FCA regulated CMCs since January 2024.This number increased significantly following the Johnson judgment. Concerns include unrealistic claims about success rates and the value of potential compensation.The FCA has launched a £1m ad campaign to make people aware they don’t need to use a CMC or law firm to seek motor finance compensation, and that they stand to lose a chunk of any compensation they’re owed if they choose to. Research shows 4 in 10 people don’t know they can receive motor finance compensation without using a CMC or law firm. The campaign will run online and on radio.The SRA is investigating 76 law firms involved in high-volume claims and has closed five firms to protect the public.Its recent Thematic Review set out the key issues,and it has made clear its expectations on termination fees. The FCA and SRA continue to work closely, given that many FCA regulated CMCs refer motor finance claims to law firms.Since January 2025, the ICO has received over 230,000 complaints via the spam reporting service regarding unsolicited and unlawful direct marketing practices linked to motor finance claims. In response, the ICO has multiple investigations ongoing and is actively considering further regulatory action against several organisations.The ASA is also reviewing advertising practices in this sector.Consumer guidanceConsumers who believe they have been misled by advertising, signed up without their consent, charged unreasonable fees, had their data mishandled, or otherwise feel they have been treated unfairly by a CMC or law firm should first complain to the firm. If dissatisfied with the response, they should take their complaint to theClaims Management Ombudsman orLegal Ombudsman.To support the public, the SRA has also published guidance onmotor finance claims, and onno-win, no-fee agreements.Individuals concerned about direct marketing practices or those wishing to make a complaint, are encouraged to do so via theICO website. They can also report spam text messages to the ICO by forwarding the message for free to 7726 (which spells out SPAM).Notes to editorsTo require information from law firms it does not regulate, the FCA is using its powers under the Consumer Rights Act 2015. This is the first time the FCA has used these powers as a public designated enforcer under the Digital Markets, Competition and Consumers Act 2024.The FCA and SRA warning to CMCs and law firms over poor practices in motor finance claims.FCA campaign to raise awareness of motor finance compensation scheme.FCA announcement that it will consult on a motor finance compensation scheme.Letter to CMCs on financial promotions and motor finance claims 31 July 2025.

The FCA and the Practitioner Panel have published a report from our 2024/25 joint survey of FCA regulated firms. We have published the findings of the FCA and Practitioner Panel 2024/25 survey (PDF).The survey feedback gives us a clear picture of how firms see the FCA’s performance and are an important tool to help us focus on the issues that matter most.Feedback shows that firms’ views are broadly similar with previous years. Most continue to hold a positive perception of our performance (rated us 7 out of 10 for satisfaction) and trust (81% said trust levels had stayed the same as the previous year) in our role to deliver strategic priorities and maintain the integrity of financial markets.Matt Hammerstein, chair of the FCA Practitioner Panel said:'These results highlight both the progress the FCA has made and the areas where further improvement is needed. It is encouraging that trust levels, along with perceptions of staff knowledge and experience, have remained steady, and many of the areas for improvement align with priorities set out in the FCA’s new 5-year strategy.'The Practitioner Panel looks forward to using the valuable input gathered from the survey to continue to provide constructive challenge to the FCA throughout the next year.'Firms have also told us there are areas we can improve on, including:Taking further steps to support growth and competitivenessContinuing to reduce unnecessary data requests, by asking for only what we needStreamlining our supervision approach by reducing the amount of correspondence firms receiveNikhil Rathi, chief executive of the FCA said:'Listening to firms of all sizes helps us understand what really matters to them, and the feedback is essential to shaping how we operate. By acting on these insights, we can continue to strengthen our effectiveness and be a smarter regulator.'We’re already taking significant strides to address these priorities and drive meaningful improvements where they matter most. Since the survey was carried out, we have launched our new 5-year strategy focusing on helping consumers, fighting crime, supporting growth and being a smarter regulator.The survey was carried out between 3 February and 31 March 2025. Since then, we’ve delivered a range of measures to support our growth objective with many more to come. This includes the overhaul of the UK listings rules, reform of UK retail disclosure rules, better value for money for workplace pension savers and improved consumer advice, to promoting innovation through our AI lab. We have also been cutting back on data reporting returns, benefitting over 36,000 firms, and have plans to take a more flexible approach to our supervision.