Speaking at UK FinTech Week, Jessica Rusu, chief data, information and intelligence officer at the FCA, has confirmed the second group of firms selected to join AI Live Testing. Eight new firms, including Barclays, Experian, Lloyds Banking Group (Scottish Widows), and UBS, have been chosen by the FCA to live test AI applications to support safe and responsible deployment.The FCA is working with its technical partner Advai, a London-based specialist in automated AI assurance, to provide AI Live Testing. This initiative helps successful applicants explore key questions around risk management and live monitoring to support the responsible deployment of AI for consumers and markets.Applications reflect the fast-evolving nature of the technology, with a diverse range of AI models underpinning use cases – from agentic AI and small language models to emerging solutions such as neurosymbolic AI. Firms in the second group are testing both customer-facing and business‑to‑business use cases, including AI-enabled targeted support for investments, credit score insights for consumers, agentic payments, anti-money laundering detection, and Know Your Customer.'We’re continuing to collaborate with firms to support the safe and responsible development of AI in UK financial markets,' said Jessica Rusu, chief data, information and intelligence officer at the FCA. 'With tailored support from the FCA and Advai, the initiative reflects our commitment to supporting the pace of change in AI, whilst demonstrating how regulators and industry can work together to harness innovation responsibly.'The FCA will also publish a good and poor practice report for AI in financial services later in 2026 to support firms in the safe and responsible adoption of the developing technology.The announcement coincides with the publication of the FCA’s Innovation Insights report, which highlights how fintech innovation is evolving in the UK and what the regulator is learning from firms engaging with its innovation services.The FCA’s Regulatory Sandbox and Innovation Pathways saw a 49% increase in applications on the previous year.The report also shows that fintech market activity closely matches demand for the FCA's innovation services, particularly in fast-growing areas like AI.Applications for the AI Live Testing second cohort opened in January 2026, with firms beginning testing in April. Testing will conclude by the end of the year, with an evaluation report published in Q1 2027.Notes to editorsThe full list of firms in the second cohort are as follows: Aereve, Coadjute, Barclays, Experian, Go-Cardless, Lloyds Banking Group (Scottish Widows), UBS and Palindrome.In September 2025, the FCA published a Feedback Statement on the potential benefits, opportunities and challenges raised by our proposal for AI Live Testing.The FCA set out how we are working to accelerate digital innovation in our response to the Prime Minister’s letter (PDF), including that we would avoid additional regulations for AI by relying on existing frameworks.Read more about how FCA rules apply to AI.Read Jessica Rusu's speech at UK FinTech Week.In January, the FCA launched a review led by Sheldon Mills into the implications of advanced AI on consumers, retail financial markets and regulators.Advai is a UK-based AI company specialising in automated testing, evaluation and assurance of AI systems, providing independent technical evidence so organisations can deploy AI safely and confidently at scale.Firms in the first group included: Gain Credit, Homeprotect, part of the Avantia Group, NatWest, Monzo, Santander, Scottish Widows, part of Lloyds Banking Group and Snorkl.The Innovation Insights report aims to support earlier regulatory engagement and strengthen evidence‑led policy and supervision under the FCA’s Strategy 2025–2030.

Speech by Jessica Rusu, FCA chief data, information and intelligence officer at IFGS. Key pointsAgentic commerce will change how financial decisions and transactions are made, demanding a fundamentally new approach.We are expanding practical support for firms through the next phase of our AI Lab.Open Finance will provide the foundations of a more intelligent financial system.We are supporting solo-regulated firms scale, with our Scale-Up unit open for expressions of interest.

Help shape financial regulation from the perspective of consumers. We are recruiting 2 new members to the Financial Services Consumer Panel, an independent statutory panel that represents the interests of consumers of financial services to the FCA.Panel members provide constructive challenge and expert advice to help ensure the consumer perspective is fully embedded in the FCA’s policy development and implementation. Members engage regularly with senior FCA colleagues, including the chair, chief executive and Executive Committee, and contribute across a wide range of current and emerging issues affecting consumers.We are looking for individuals with strong expertise and experience in areas such as consumer policy, behavioural insights, innovation and technology, fintech or digital markets, retail banking, investments and payments.We welcome applicants with a clear commitment to representing the interests of consumers from across society.The closing date for applications is 15 May 2026.Find out more and apply via the FCA Careers website.

On 16 April 2026, HDH Investment Services Limited (HDH), which advised on and arranged deals in investments, entered Creditors’ Voluntary Liquidation (CVL). Dina Devalia and Tom Parish of Quantuma Advisory Limited (Quantuma) have been appointed as joint liquidators.On 20 January 2026, HDH agreed to stop carrying out any regulated activity. This was because we were concerned that HDH may have given unsuitable financial advice to some of its customers, potentially leading to financial loss.HDH remains subject to supervisory oversight and our rules, and we are working closely with the joint liquidators.

Under the Consumer Duty, firms must report annually on what their monitoring found about customer outcomes, and what actions they’ll take as a result.Good Consumer Duty Board reports provide clear evidence about outcomes – helping to turn governance into real change. Boards can ask better questions, hold people to account, and act quickly to make sure they aren’t causing harm or offering poor value. We’ve seen this lead firms to design better products, communicate more clearly and support their customers better. This means they fix issues sooner, and customers are more likely to get fair value and the help they need.With the third cycle of Consumer Duty Board reports on the horizon, now is a good moment to pause and reflect on what we’ve learned from year 2.The good news: the Duty is making a difference. Firms are continuing to mature in how they use data and insights to understand their customers' experiences. Boards are more actively shaping and scrutinising this work.Still, some areas need more attention to ensure reporting is genuinely outcome‑focused. Here’s where firms have made progress compared to our review of first year board reports, and where concentrating effort now will help them prepare for the next round of reporting.

The FCA has finalised a simpler UK short selling regime that reduces reporting burdens for firms, while maintaining regulatory oversight. Short selling plays an important role in financial markets by supporting price formation, providing liquidity, and facilitating risk management.The new rules follow legislative changes under the Government’s repeal and replace programme, which imply that the FCA will publish aggregated data showing the overall size of net short positions in each company rather than identifying individual short sellers.As well as implementing these changes, the new rules set out how the FCA will oversee short selling in a more proportionate and practical way.Firms will benefit from a more workable reporting timetable, with extra time to calculate and submit short position reports. In addition, rules for market makers have been simplified allowing eligible firms to make far fewer notifications to us about exemptions, replaced by an annual confirmation. This cuts administrative effort while retaining regulatory oversight.Jon Relleen, director of infrastructure and exchanges at the FCA, said: 'These changes give firms clearer rules and cut administrative burdens, while ensuring we have the information we need to keep the market fair. It is smarter regulation in action.'Notes to editorsRead the Policy Statement, rules and operational guidance.The FCA’s powers to intervene in exceptional market conditions, including through emergency measures, remain unchanged. The regulator set a high bar for the use of the emergency powers and only consider using them in exceptional circumstances.

Crypto will be regulated in the UK from October 2027. The FCA is finalising the wider cryptoasset regime, with rules to be published this summer. Parliament has now confirmed which cryptoasset activities will fall within the scope of regulation. Building on that, the FCA is consulting on new guidance to help firms understand how they might be affected by the regulatory regime for cryptoassets.The FCA is seeking feedback on its interpretation of the following regulated cryptoasset activities:issuing qualifying stablecoinoperating trading platformsdealing and arranging deals in qualifying cryptoassetssafeguarding cryptoassetsstakingThe proposed guidance supports the FCA’s aim for an open, sustainable and competitive crypto market people can trust.Crypto firms will be able to start applying for authorisation from September 2026. Ahead of this, the FCA is providing crypto firms with support on how to apply and to understand how the future regime could work.Until the new regime comes into force, crypto is largely unregulated except for financial promotions and financial crime purposes. As with all high-risk investments, people should only put in what they can afford to lose.Notes to editorsRead the full consultation.The consultation closes on 3 June 2026.This publication marks another step towards crypto regulation in the UK, following the making of the statutory instrument in Parliament on 4 February 2026.The FCA has set out the timeline for crypto regulation in its crypto roadmap.The FCA has consulted on stablecoin issuance and cryptoasset custody (CP25/14), prudential rules (CP25/15 and CP25/42), the application of the FCA Handbook (CP25/25 and CP26/4), regulating cryptoasset activities (CP25/40), and admissions and disclosures and market abuse (CP25/41).The FCA’s consultations on rules for the future cryptoasset regime are substantively complete, with policy statements to be published this summer. This perimeter guidance consultation complements that work by clarifying which activities fall within scope, with a final policy statement due in autumn.The authorisations gateway opens on 30 September. The FCA is hosting authorisation-focussed webinars to support prospective applicants, with an introduction to the upcoming regulatory changes and an intro to anti-money laundering regulations available on demand. The next webinar, on 29 April, focuses on the Senior Managers and Certification Regime.Later this year, the FCA will consult on decentralised finance (DeFi) guidance and separately on operational resilience guidance for firms using distributed ledger technology (DLT). It will also consult on updates to the Financial Crime Guide relevant to cryptoasset firms.Find out more about requirements firms must comply with.

The FCA has set out plans to take action against Hartley Pensions Limited and an individual involved at the firm. Hartley was a Self-Invested Personal Pension operator, which went into administration in July 2022. The FCA alleges that Hartley provided it with false and misleading information and improperly withdrew and invested substantial amounts of customers’ pension funds, without their consent, to benefit an individual at the firm.The FCA alleges that the individual dishonestly used the pension funds and made false representations to obtain money for a company that they owned. They then misled the FCA to conceal this misconduct.The issued Warning Notices are not the FCA's final decisions and there is a right to make representations to the Regulatory Decisions Committee. In the event that the FCA makes final decisions, it intends to make its findings public at the appropriate point, but it cannot provide any further detail beyond the Warning Notice Statement at this stage, including about any proposed sanctions.Notes to editorsWarning Notice Statement for Hartley Pensions Limited (PDF).Warning Notice Statement for individual (PDF).The FCA previously provided an update: Hartley Pensions Limited enters administration.In relation to the Warning Notice for the individual, subject to any written and/or oral representations to it, the Regulatory Decisions Committee may decide to take no further action, in which case the matter is discontinued, or to proceed with enforcement action, issuing a Decision Notice setting out the action to be taken. If a Decision Notice is issued, the subject may refer the matter to the Upper Tribunal. If it is not referred, or if the case is settled, the FCA will issue a Final Notice giving effect to the outcome.

Adverts which used edited, unauthorised clips of Martin Lewis to make misleading claims about average motor finance compensation and used the FCA logo without permission, have been banned by the FCA. Conclusive Financial Ltd (Conclusive), a claims management company (CMC), which also trades as PCP Refunds, was required to remove its advertising and update or take down its website until it complied with the FCA's rules. Conclusive has since removed the banned adverts.The FCA was also concerned that some of the firm’s adverts stated consumers would receive £1,846 on average for compensation for motor finance claims, with no explanation of how they reached this figure.Conclusive also promoted a 'No Win, No Fee' service on its websites, without a proper explanation of the fees, including any exit fees, people would be charged. It did not tell consumers that they could make claims for free to their lender or to the Financial Ombudsman Service without the need to use a CMC.Alison Walters, director of consumer finance at the FCA, said: 'Consumers should be wary of adverts that overpromise or give the impression they are endorsed by the FCA or well-known individuals. We will take swift action where rules are being broken.'Our scheme is free and people don’t have to use a CMC or law firm. If they do, it’s important that they can trust them.'A joint taskforce with the FCA, Solicitors Regulation Authority, Advertising Standards Authority and Information Commissioner’s Office was recently formed, which is the latest measure by the regulators to improve standards. Following FCA action, CMCs have removed or amended 899 misleading adverts since January 2024.Advice for consumersConsumers who have engaged with Conclusive and believe they have been misled by its advertising, should complain directly to Conclusive. If consumers are unhappy with the outcome, they can refer their complaint to the Financial Ombudsman Service.If a consumer, as a result of seeing these adverts, has signed up with a law firm, then they should complain to the law firm directly and the Legal Ombudsman if they remain unsatisfied.Notes to editorsFirst Supervisory Notice: Conclusive Financial Limited (PDF).Millions of car finance customers to get payouts this year as FCA goes ahead with compensation scheme.Consumers can make a motor finance claim for free. Check our website for more information.

Consumers and businesses could be given greater control over their financial data to help secure better deals, under a vision for open finance published by the FCA. Open finance will unlock the potential for people and businesses to share their financial data securely with a range of financial services providers, helping them access mortgages, investments, savings and pensions. This will give financial services firms a more complete picture of consumers’ and businesses’ finances, enabling more personalised and inclusive services, alongside more competitive pricing and stronger fraud protection.The FCA will prioritise exploring how open finance can help small and medium-sized enterprises (SMEs) improve access to credit and speed up loan applications. It will also examine how open finance can help consumers manage and improve access to mortgages.David Geale, executive director for payments and digital finance at the FCA, said: 'Open finance has the potential to transform how people interact with financial services. By giving consumers and businesses more control over their own financial data, we can help them access credit, secure better deals and receive more customised support – while fuelling innovation, competition and supporting economic growth.'To progress plans as quickly as possible, the FCA will engage with industry, consumer groups and fellow regulators in 2026 to develop a range of practical open finance use cases. This will be done through the FCA's Smart Data Accelerator and PRISM (Prioritisation and Real-world Insights Selection Matrix) Taskforce.Adam Jackson, chief strategy officer at Innovate Finance, said: 'Just as open banking has sparked the growth of many UK fintechs, so open finance can power a new wave of innovation. By unlocking high-quality data in a way that secures consumer trust, open finance can be a foundation for widespread adoption of agentic AI. We support collaboration between industry and the FCA to deliver the roadmap at pace, enabling agreement on priority use cases and datasets, and appropriate regulatory action to open these up to competition and innovation.'The FCA will work with HM Treasury on options for a regulatory framework for open finance by the end of 2027. Firms will be supported to introduce open finance products sooner where they are already able to access data and appropriate permissions are in place.Notes to editorsRead the roadmap: Open finance: our vision for a smart data future.The FCA’s Smart Data Accelerator allows firms to test emerging technologies and use cases for open finance in a secure space, supporting agile and dynamic policymaking.The FCA-led PRISM (Prioritisation and Real-world Insights Selection Matrix) Taskforce will create a clear, reusable framework for assessing the impact of open finance use cases.The FCA will consult on its proposed long-term regulatory framework for open banking before the end of 2026. Open banking is a secure and regulated way for people and businesses to share access to payments data from their bank account with trusted apps and services.Open banking has approximately 17 million users, representing nearly 1 in 3 adults in the UK.Research by Open Banking Limited and EY suggests that the economic impact of open banking and open finance combined could reach £7.4bn per year in 5 years. For more information, visit open banking and open finance.

How we're investing in data and analytics in consumer financeOur goal is regulation that is evidence-based, targeted, and achieves good outcomes for consumers. That’s why we’ve been using richer datasets and sharper data science to drive better outcomes in the consumer finance market, widen financial inclusion, and support economic growth.This blog post explains one way we've been doing that, in a proof-of-concept undertaken by the team of Isabela Barra, Daniel Bogiatzis-Gibbons, Lawrence Charles, and Wenjin Li (detailed results in the Technical Annex (PDF)).We draw on credit file information from a major Credit Reference Agency (CRA), an existing source of data that the FCA has been using since 2018. We apply novel advanced statistical methods to draw new insights from it on which consumers are likely to fall into distress on their credit products and at what time. We can do this given we have a wider market view than an individual firm’s data sources.This means we can:Spot patterns that reveal emerging or disproportionate harm among consumer groups based on past performance data.Sharpen our focus on affordability and vulnerability for consumers, separating momentary blips from ongoing strain.Get ahead of risks with earlier, more targeted supervision and timely engagement with firms.This focus gives us a market-wide view related to our rules on strengthening protections for borrowers in financial difficulty. These include requirements for firms to offer supports before customers fall into arrears, for it to be tailored, and to pay attention to customers with vulnerabilities.In future, we will use our product sales data (PSD) on credit agreements in data science projects. The PSD will further help us to plot trends in consumers' engagement across different credit products and identify triggers of financial distress across different consumer groups. The PSD will also have more comprehensive coverage than CRA data when fully operational.What we are doing: Looking at whole credit journeys, not just snapshotsNew datasets and uses of existing ones are driving exciting improvements in our analysis. Traditional credit indicators include delinquency rates, credit scores, and payment histories. They tend to flag problems after they have already crystallised.However, they often miss:Direction – whether a person’s financial position is getting stronger or weaker.Velocity – how quickly the stress is building.Persistence – whether early signs of stress fade or worsen.Combined signals – when several modest, individual changes that may be manageable on their own add up to increase risk.What’s different about our new approach is that it tracks how people move between different states of financial stability, emerging stress, and acute distress. By spotting those common patterns in consumers’ credit journeys early, it helps us prioritise groups of people and firms where financial stress is emerging.We assign each person to one of 5 segments at a given time:Distress (about 5% of users) – severe credit issues such as going bankrupt or falling more than 3 months behind on credit payments.At Risk (about 5% of users) – early warning signals (for example, recent missed payments, a high level of usage of their available credit limit, or multiple new unsecured accounts (like extra credit cards).Secured Credit Users (about 1 in 3 users) – at least one active mortgage and stable use of credit.Unsecured Credit Users (about 1 in 5 users) – active users of multiple unsecured products with stable behaviour.Low Credit Engagement (about 1 in 3 users) – limited or no use of formal credit.Using these definitions, we can see transitions between the 5 segments. See figure 3 in our Technical Annex (PDF). Most consumers remain stable, but there are clear flows from At Risk into Distress, and some recovery back to Unsecured or Secured.These transitions show that distress rarely just appears without warning signs. It usually comes after a period of instability, such as rising balances or missed payments. Equally, recovery is uneven. Some people stabilise quickly, while others remain in difficulty for longer.Identifying who is at risk is only part of the job. Timing also matters. We use what statisticians term 'survival analysis' to estimate how long someone is likely to remain financially stable and identify what factors change that timeframe.Using this analysis to take a forward-looking view across the entire consumer population shows that:Individuals in the Low Credit Engagement and Secured Credit groups remain financially stable the longest.The At-Risk group have the shortest period of financial stability.Having recent missed payments, multiple new unsecured credit accounts, or increasing use of a person’s available credit limit is associated with moving into the Distress group faster.What’s next: How analytics supports our consumer finance goalsBuilding on our work here, we will monitor how consumer journeys in credit develop over time. It will help us understand how people are accessing credit products. Then, we can proactively identify potential risks, allowing us to target supervision more effectively.That’s how we can help people weather changes in their financial circumstances and navigate their financial lives. For example, we recognise that consumers’ use of credit is evolving all the time. So, we will incorporate Deferred Payment Credit (DPC, often known as Buy Now Pay Later), products in future iterations of this analytical work.We’re keen to join forces with academics and tech innovators exploring credit file data to drive consumer outcomes. Please contact Lawrence.Charles@fca.org.uk. We also welcome continued input from financial firms and consumer groups through our Consumer and Practitioner Panels.Together, we can work to spot risk earlier, focus support where it helps most, and maintain credit markets that work well for consumers who rely on them.

On 21 November 2025, we imposed restrictions on Bazar Money Transfer Limited (BMTL), preventing it from providing regulated payment services. BMTL is registered with the FCA to provide money remittance services to retail and corporate customers.As BMTL was no longer meeting the conditions for registration as a small payment institution, we acted to impose restrictions to protect consumers, preventing BMTL from carrying out any regulated payment services.Following representations made by BMTL, on 6 March 2026, we issued a Second Supervisory Notice, keeping the restrictions in place.Anyone who needs to send or receive money should use an alternative authorised or registered payment services firm.Any BMTL customers who haven’t received expected funds should contact our Supervision Hub.BMTL is also not registered to carry on cryptoasset business and must not provide these services to customers.More informationYou can read the Second Supervisory Notice which outlines our concerns and the basis for imposing the restrictions.Find out more about the restrictions on the Financial Services Register.The FCA is the anti-money laundering and counter-terrorist financing supervisor of UK cryptoasset businesses under the Money Laundering Regulations (MLRs).Any cryptoasset exchange provider or custodian wallet provider which operates its business in the UK must be registered with the FCA – Cryptoassets: Who needs to register.

The FCA and Bank of England (Bank) invite expressions of interest from market participants to join a new taskforce. The purpose of this taskforce is to inform the design of our long-term approach to harmonising transaction and post-trade reporting requirements.The taskforce will be comprised of three separate working groups: a main Policy group, supported by a Strategy group and an Architecture group. The working groups will have the following individual objectives: Policy group:Identifying and assessing opportunities for harmonising data collected under UK MiFIR, UK EMIR and UK SFTR.Reviewing and sharing feedback on proposals to support the simplification of reporting of the data.Strategy group:Providing strategic insight from industry experience to help simplify transaction and post-trade reporting.Exploring how harmonisation will benefit reporting firms’ overall wholesale market activity.Architecture group:Identifying and assessing opportunities to leverage modern technologies, architecture and data to simplify and streamline transaction and post-trade reporting.The working groups will each be co-chaired by the FCA and the Bank as set out in further detail in the terms of reference (PDF). Membership will comprise a diverse set of senior representatives drawn from firms involved in transaction and post-trade reporting.Members are appointed in a personal capacity.We will seek to ensure balanced representation across the different types of firms active in wholesale markets, as well as appropriate diversity of membership, in line with our commitment to promoting diverse and inclusive financial services.What to expectThe duration of the appointment is for an initial period of 18 months, after which it will be reviewed.The working groups will meet on a regular basis, normally every 2 months, but they may meet more frequently, if necessary, to carry out their responsibilities.How to applyMarket participants who are interested in joining the taskforce are invited to apply.Please email the FCA at cp25-32@fca.org.uk with your:CVCover letter, indicating which working group(s) you would like to be considered forThe deadline for applications is 23 April 2026.Applicants should read the terms of reference (PDF) before applying.Please note that all applications will be shared between the FCA and the Bank. Information about the FCA’s and the Bank’s use of personal data can be found in the Privacy Statement at the bottom of this page.Next stepsMembers appointed to the taskforce will be announced in due course.Privacy StatementBy responding to this call for expressions of interest, you are providing personal data to the FCA. This may include your name, contact details (including, where provided, details of the organisation you work for), and a summary of your role and experience.As this is a joint initiative between the Bank and the FCA, the FCA will share your application and personal data with the Bank for the purpose of reviewing and assessing applications for membership of the taskforce. The Bank and the FCA may also use your details to contact you to clarify aspects of your application.Information provided in your application, including personal data, may be subject to publication or disclosure to other parties in accordance with applicable access to information regimes, including the Freedom of Information Act 2000, data protection legislation, or where otherwise required by law or in discharge of the Bank’s or the FCA’s functions.Please indicate if you regard all, or some of, the information you provide as confidential. If the Bank or the FCA receive a request for disclosure of this information, we will take your indication(s) into account but cannot give an assurance that confidentiality can be maintained in all circumstances. Any confidentiality disclaimer generated automatically by your IT system in emails will not, of itself, be regarded as binding on the Bank or the FCA.Personal data will be stored in accordance with the Bank’s or FCA’s applicable document retention policies.To find out more about how the Bank handles your personal data, your rights, or how to contact us, please visit Privacy and the Bank of England.Further information about the FCA’s use of personal data can be found on the FCA website here.

We are going ahead with a scheme to compensate motor finance customers who were treated unfairly. Courts have found that firms broke the law by failing to disclose important information to customers. An industry-wide scheme is the quickest and most cost effective way to deliver fair compensation.We had over 1,000 consultation responses and engaged extensively with consumer groups, professional representatives, firms, manufacturers, investors and industry bodies. While most respondents supported a scheme, we received much conflicting feedback on its details.We have listened and made several changes, set out in detail below, to design a final scheme which strikes the balance between sometimes competing principles such as simplicity and cost effectiveness, comprehensiveness and fairness.Our final approach is fair for consumers and proportionate for firms.We have tightened eligibility so only those treated unfairly receive compensation. Agreements involving minimal commission or zero APRs will not receive redress. Where a lender can prove there were visible links with a manufacturer and dealer, a contractual tie alone will not trigger compensation. The threshold for high commission cases has been modestly raised. These and other changes mean 12.1m agreements are now eligible for compensation, down from 14.2m at consultation.We have adjusted how compensation is calculated to better reflect greater loss between 2007-2014. We have also ensured that consumers are not put back in a better position than they would have been had they been treated fairly, so in around 1 in 3 cases compensation will be capped. Firms are expected to pay out around £7.5 billion in redress, down from £8.2 billion at consultation.We have also streamlined the scheme so consumers are compensated quickly and it is cost effective for firms to deliver. Millions of consumers will be compensated this year, most of the rest by the end of 2027. Lenders will only need to contact complainants or those due compensation and recorded delivery will not be required, helping to cut the cost to firms of delivering the scheme by over 40%.The estimated total bill to firms is down from £11 billion to £9.1 billion.We want to provide certainty for consumers and finality for firms and investors, supporting the ongoing availability of competitively priced motor finance. Our approach is the best way to resolve this issue in the interests of consumers, firms, investors and the market. We estimate the cost of dealing with complaints would be over £6bn more without a scheme.We expect everyone to get behind the scheme, and lenders to put things right promptly for their customers. We need to draw a line under the past and support a healthy motor finance market for the future.ScopeMotor finance agreements taken out between 6 April 2007 and 1 November 2024 where commission was payable by the lender to the broker will be considered for compensation.Firms owe liabilities from 2007. If complaints from that date were not covered they would need to be dealt with individually by firms, the Financial Ombudsman Service and through the courts, resulting in higher costs, lengthy delays and greater uncertainty.We have the powers to include agreements before 2014. However, this was questioned by some consultation respondents. So, we will implement two schemes, one covering 6 April 2007 - 31 March 2014 and one from 1 April 2014 - 1 November 2024. If the earlier period is subject to legal challenge on these grounds, redress for consumers with agreements from April 2014 shouldn’t be delayed.EligibilityConsumers will only be considered for compensation if they weren’t told details of at least one of 3 arrangements between the lender and the broker (usually the dealer):A discretionary commission arrangement (DCA), which allowed the broker to adjust the interest rate the customer would pay to obtain a higher commission.A high commission arrangement (at least 39% of the total cost of credit and 10% of the loan).Contractual ties that gave a lender exclusivity or a right of first refusal, except where the lender can prove there were visible links with the manufacturer and dealer.There will be some exceptions, with cases considered fair, if:The commission was £120 or less for agreements beginning before 1 April 2014 and £150 or less from that date. Commission amounts below those levels are unlikely to have influenced the consumer’s decision or broker’s behaviour.The borrower wasn’t charged interest.The DCA wasn’t used to earn discretionary commission.The lender can prove, in certain limited circumstances, it was fair not to disclose one of the arrangements above or that the consumer did not suffer any loss. This includes if a tie wasn’t operated in practice or no better deal was available.Consumers who have successfully complained to the Financial Ombudsman, had their claim determined by a court or accepted redress will be excluded from the scheme.Claims for high value loans - higher than 99.5% of other loans that year - are also excluded, as they are not suitable for a mass-market redress scheme. These consumers can still complain to their lender and the Financial Ombudsman.Consumers generally have 6 years to bring a claim, but that may be extended where information about commission or a tie was deliberately concealed. We do not expect lenders to routinely find that cases are out of time to be considered for the scheme, given how poor disclosure was.However, firms can exclude cases only involving high commission and ending before 26 March 2020 if they can show that the fact commission was payable was clearly and prominently disclosed. If firms rule consumers out of the scheme on this basis, they must inform them and explain why. The consumer will have the right to challenge this with the Financial Ombudsman.Consumers whose arrangement is deemed fair under the scheme can ask the Financial Ombudsman to review whether the scheme rules were followed. They could still make a claim in court.Calculating redressApproximately 90,000 consumers whose cases align closely with the Johnson case considered by the Supreme Court will receive redress of all commission plus interest. We define these as cases involving an undisclosed contractual tie and/or DCA and very high commission of at least 50% of the total cost of credit and 22.5% of the loan.For all other cases, consumers will receive the average of estimated loss and the commission paid, plus interest (the hybrid remedy). The estimated loss is based on economic analysis that shows there was a difference in the APR on DCA loans compared to those with flat fee arrangements.Following feedback, we have enhanced our analysis, incorporating more agreement data and covering a longer period of 2017-2021. We estimate average loss to be equivalent to an APR adjustment of 17% for this period and apply it to agreements from 1 April 2014.Firms have advised that the availability of pre-2014 data is limited. Collecting such data risks delaying compensation for consumers and certainty for firms with no guarantee it would materially improve any estimate of loss.Feedback and supporting evidence from respondents indicate that more harmful forms of DCA were more prevalent in earlier years. Differences between average DCA and non-DCA APRs were also larger during this period, indicating greater financial loss.To reflect that, we have set an APR adjustment of 21% for pre 2014 cases. This sits at the mid-point between a 17% and 26% APR adjustment. The latter figure is, on average, equivalent to being repaid commission, which is the remedy reserved for those who suffered the most unfairness. The difference between APR-17% and APR-21% results in an increase to average redress of £31 for pre 2014 cases.We are also using these APR adjustments for the relatively small number of cases that didn’t involve a DCA, but involved high commission or a tie.Consumers should not be compensated more than if they had been treated fairly or than those who suffered the most unfairness. So in around 1 in 3 cases receiving the hybrid remedy, compensation will be capped at the lowest of:90% of commission plus interest.The total cost of credit, adjusted to account for a minimal cost offered to only 5% of the market at the time, excluding 0% APR deals.The actual total cost of credit, calculated on a simpler basis. This may be the lower figure if the adjusted cost of credit can’t be accurately calculated, for example, if the lender doesn’t have the payment schedule.This means that about 64,000 agreements, where the APR was in the lowest 5% offered in the market at the time, excluding 0% deals, will not get compensation.Simple interest will be paid on compensation, based on the annual average Bank of England base rate per year plus 1% from the date of overpayment to the date compensation is paid. We have introduced a floor so the minimum interest rate consumers will receive for any year is 3%. Consumers will no longer be able to challenge the rate they get.How the scheme will operateThere will be a short implementation period so firms can prepare. This will be up to:30 June 2026 for loans taken out from 1 April 2014.31 August 2026 for those agreed earlier.People who have already complained or complain before the end of the relevant implementation period will be compensated sooner. Lenders will have 3 months from the end of the implementation period to let complainants know whether they’re owed compensation and how much.Firms will only have to contact people who haven’t complained if they are potentially owed money or those who are timed out of the scheme, avoiding unnecessary and costly communication with customers who are not owed redress. Firms have 6 months from the end of the relevant implementation period to do so. Consumers must respond within 6 months if they wish to join the scheme. Consumers who are not contacted can still complain to their firm by 31 August 2027.Lenders can use a range of communication channels that best meet consumers’ needs, with appropriate safeguards to prevent fraud.Cost of redressBased on further analysis, we now estimate 75% of eligible consumers will take part, resulting in firms paying redress of £7.5 billion. Non redress costs are estimated to be £1.6 billion, taking the likely total bill to firms to £9.1 billion.Our consultation set out indicative cost estimates. We have since refined our methodology to fully align with our consultation proposals and incorporated further lender data into our modelling. We have updated estimated redress liabilities and non redress costs under our proposals, compared to under our final rules, below.Consultation proposalsConsultation proposals, updatedFinal policyRedress at estimated uptake£8.2bn(85% uptake)*£9.3bn(75% uptake)£7.5bn(75% uptake)Non redress costs£2.8bn£2.5bn£1.6bnTOTAL (at estimated uptake)£11bn£11.8bn£9.1bnRedress liabilities(100% uptake)£9.7bn£12.5bn£10bnEligible agreements14.2m16.8m12.1mAverage redress per agreement£695£775£829*At 75% uptake this would have been £7.3bn.Ensuring compliance with the schemeWe have established a dedicated supervisory team, led by a Director. We will supervise firms closely to make sure they follow the rules, including assessing whether any exclusions of agreements have been applied appropriately. Firms’ senior managers will be required to attest to responsibility for their firm’s overall oversight and delivery of the scheme.We will intervene if firms fail to comply, including using enforcement powers if necessary. Firms will have to report regularly so we can closely monitor compliance, and we will publish updates on the scheme’s progress.We have set up a taskforce with the Solicitors Regulation Authority, Advertising Standards Authority and the Information Commissioner’s Office to tackle the poor handling of motor finance claims by some claims management companies (CMCs) and law firms.Market impactThe motor finance market has continued to attract investment and function well since we announced our intention to introduce a compensation scheme.Share prices of affected UK listed lenders increased by a range of 2.1% to 29.7% in the two weeks following the Supreme Court judgment and continued to rise steadily until the recent conflict in the Middle East. There have been 5 public securitisations of UK automotive loans since September 2025. New car sales in February reached a 22-year high and a record £41bn was lent on motor finance in 2025, 6% up on 2024.We have updated our analysis of the scheme’s potential market impact. We conclude there will be limited impact on the new car finance market.Changes we have made to how the scheme operates, such as removing the need to write to all customers, will benefit sub-prime and smaller lenders by ensuring the scheme is cost-effective to deliver. While there may be some short-term effects in the used and subprime segments, these are expected to be modest, with any affected lending volumes replaced over time.Overall, we anticipate continued availability of motor finance and strong competition between lenders. Without a scheme, the impact on access to motor finance and prices for consumers could be significantly higher with uncertainty continuing for many more years.

Millions of motor finance customers will receive compensation this year under an FCA scheme for those treated unfairly by firms who broke the law by failing to disclose important information. Consumers were denied the chance to seek a better deal and, in some instances, paid more for their loan.The FCA has made several changes to the free to use scheme in response to conflicting feedback from consumers, their representatives, firms, manufacturers and industry bodies.This ensures it is fair for consumers and proportionate for firms. The eligibility criteria have been tightened, average compensation increased for older agreements and a minimum 3% compensatory interest rate per annum added. Payouts will be capped in around 1 in 3 cases to ensure no one is put in a better position than had they been treated fairly.12.1 million agreements made between 2007 and 2024 are now eligible for compensation, fewer than under the FCA’s original proposals. The average payout has increased to around £830 per agreement. The FCA estimates that 75% of eligible consumers will make a claim. If so, total redress paid would be £7.5bn.Nikhil Rathi, chief executive of the FCA, said: 'We’ve listened to feedback to make sure the scheme is fair for consumers and proportionate for firms. It will put £7.5 billion back into people’s pockets.'Now we need everyone to get behind it and ensure millions get their money this year. Payouts should not be delayed any longer, especially as household bills come under greater pressure. Delivering compensation promptly also gives lenders the chance to rebuild trust, and means we can draw a line under the past and support a healthy motor finance market for the future.'An industry-wide scheme is the most efficient way of compensating affected consumers while supporting the ongoing availability of competitively priced motor finance for millions who rely on it. Without such a scheme, the cost to lenders of dealing with complaints through the Ombudsman or courts is estimated to be over £6bn higher.How the scheme will workMotor finance loans taken out between 6 April 2007 to 1 November 2024 are covered.There will be a short implementation period so firms can prepare. This will be up to:30 June 2026 for loans taken out from 1 April 2014.31 August 2026 for those agreed earlier.Lenders will have 3 months from the end of the implementation period to inform complainants whether they’re owed compensation and how much. This means that people who have already complained or who complain before the end of the relevant implementation period will be compensated sooner.Lenders will only contact people who haven’t complained if they are likely to be owed money. They have 6 months from the end of the relevant implementation period to do so. This avoids unnecessary and potentially confusing communication with people who won’t get compensation. Anyone not contacted has until 31 August 2027 to make a claim.Claims for high value loans – amounts higher than 99.5% of other loans that year – are not covered by the scheme, which is designed for the mass market. These consumers can still complain to firms and the Financial Ombudsman Service.People will only be compensated if they were not told clearly that either:Their dealer or broker set the interest rate to earn more commission (using a discretionary commission arrangement – DCA).The commission was high – at least 39% of the total cost of credit and 10% of the loan.The dealer or broker was using one lender or gave one lender the right of first refusal, (a so-called tied arrangement), except where lenders can evidence that there were visible links with a manufacturer and franchised dealer. For example, where they shared a common or similar name.There will be some exceptions, with cases considered fair, if:The commission was £120 or less for agreements beginning before 1 April 2014 and £150 or less from that date. Commission amounts below those levels are unlikely to have influenced the broker’s behaviour or consumer’s decision.The borrower wasn’t charged interest.The DCA wasn’t used to earn discretionary commission.The lender can prove, in certain limited circumstances, it was fair not to disclose one of the arrangements above or that the consumer did not suffer any loss. For example, if no better deal was available.Where the commission was very high (50% of the total cost of credit and 22.5% of the loan) and another relevant factor of unfairness existed, consumers will receive the commission paid.For most people compensation will be made up of 2 parts, the average of:The commission paid; andThe estimated loss, based on a percentage discount of the interest (APR) they paid – 17% for cases from April 2014 and 21% for earlier agreements, to reflect greater loss then.Consumers should not be put back in a better position than they would have been had they been treated fairly or than those who suffered the most unfairness, so in around 1 in 3 cases, compensation will be capped.Interest will be paid on compensation, based on the annual average Bank of England base rate per year plus 1%, at a minimum of 3% in any year.The FCA has established a dedicated supervisory team, led by a Director, to monitor if firms are meeting the scheme's rules and act if they’re not. If people disagree with their firm's decision, the Financial Ombudsman will be able to assess whether the scheme rules have been followed.The FCA has also joined with the Solicitors Regulation Authority, Information Commissioner’s Office and Advertising Standards Authority to launch a taskforce to tackle poor handling of motor finance claims by some claims management companies (CMCs) and law firms.The taskforce is the latest measure by regulators to improve standards. The FCA has already removed or amended 800 misleading adverts, over 28,000 consumers have been able to exit contracts free of charge, and 3 CMCs reduced their high fees, protecting over 500,000 consumers.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.Advice for motor finance customersIf you are concerned you were treated unfairly, make a complaint. People who complain before the relevant implementation period ends will be compensated sooner.There is information on how to complain for free on the FCA website. There is no need to use a claims management company or law firm. If you do, you could lose over 30% of any money you get.If you don’t complain and are owed money, your lender should contact you by end 2026 for post 1 April 2014 agreements and end February 2027 for agreements started between 6 April 2007 and 31 March 2014.Watch out for scams. You can check you are dealing with your genuine lender using the contact details listed on the FCA website or through the FCA’s new motor finance scams helpline. You shouldn’t pay a fee to access compensation, or share sensitive details such as your PIN or online banking details.Notes to editorsPolicy statement (PS26/3): Motor finance consumer redress schemeGraphic of key numbers.Statement to the market includes updated redress liabilities and non redress costs estimates for our consultation proposals following further modelling.Our car finance claims page for consumers.

Shojin Financial Services Limited (Shojin) is a crowdfunding platform authorised and regulated by the FCA. Shojin allowed customers to make investments that were used to fund loans toward property developments. On 23 March 2026, Shojin went into administration. Simon Carvill-Biggs and Ian Corfield of FRP Trading Advisory Limited were appointed as Joint Administrators.The Joint Administrators are responsible for acting in the best interests of the people who are owed money by Shojin, and they must work as quickly and efficiently as possible. While investors are not always classed as creditors, they should still benefit if the Joint Administrators can recover as much value as possible from the property development companies involved. If you are affected by Shojin entering administration, the Joint Administrators will get in touch with you directly.The FCA is engaging with the firm and the Joint Administrators to seek to ensure the best outcomes for investors.If you have any questions in the meantime about your investment, please contact FRP’s customer support team: invest@shojin.co.uk.Customers who are struggling financially can get free and impartial guidance from the Money Advice Service.

A new taskforce will tackle poor handling of motor finance claims by some claims management companies (CMCs) and law firms, after the FCA, Solicitors Regulation Authority (SRA), Information Commissioner’s Office (ICO) and Advertising Standards Authority (ASA) agreed to join up their efforts. The announcement comes as the FCA prepares to set out its final compensation scheme for motor finance customers.The regulators will step up efforts to share intelligence and continue to take co-ordinated and targeted actions using the full extent of their powers to mitigate harm to consumers. It will take swift action to tackle issues with unsolicited and misleading advertising, meritless claims, multiple representation, and unfair exit fees.Alison Walters, director of consumer finance and FCA taskforce lead, said: 'Our scheme will be free and people don’t need to use a CMC or law firm. Should they decide to do so, it’s important that they can trust CMCs and law firms to act in their best interests. This taskforce will ensure we deal with problems quickly and decisively.'Deb Jones, executive director of transformation and the SRA’s taskforce lead, said: 'We want consumers to have confidence in the system. The taskforce is a great example of how we as regulators can use our collective expertise and powers to not only take action, but also to improve consumers’ awareness of the standards they can expect from law firms and CMCs.'Miles Lockwood, director of complaints and investigations at the ASA, said: 'It’s vital that ads promoting motor finance redress services are clear about the commitments and costs of engaging with a CMC or law firm. The ASA will take robust and proactive action to tackle misleading advertising of such services, working in partnership with other regulators as part of this taskforce.'Andy Curry, head of investigations at the ICO, said: 'The law is long-standing, clear and simple – do not send unsolicited direct marketing without consent. We provide advice and support to help companies to comply, but where we see unlawful practices causing harm to the public, we will take action to the fullest extent. This is a serious issue, and we will work alongside our taskforce partners, pooling our expertise, knowledge and powers to address it.'Advice for consumersThe FCA’s motor finance redress scheme will be free to use. Consumers do not need to use a CMC or a law firm, and those who do may lose up to 30% of any compensation. If you decide to go through the courts, this may cost you more.Don’t sign up to multiple CMCs or law firms to represent you. Doing so may lead to multiple fees.Be cautious of potential scammers who may try to contact you via cold calls, texts or emails, claiming you are owed motor finance commission compensation or offering to check eligibility.Report nuisance calls and texts to the ICO and report misleading advertising to the ASA.If a CMC is authorised by the FCA and you're unhappy with how it's handled your case, find out how to complain.If the firm is regulated by the SRA, find out how and where to complain. Complaints for poor service or excessive fees should first be directed to the law firm, and can then be raised to the Legal Ombudsman.Notes to editorsThe FCA will announce details of a motor finance redress scheme shortly after markets close on Monday 30 March.More FCA information for consumers, including how to deal with unwanted car finance emails.The SRA's website includes expectations for law firms with regards to motor finance commission claims, and a guide for consumers who are represented by a law firm for a claim.Research commissioned by the FCA shows that 79% of motor finance customers are aware that they may be owed compensation and 61% of a possible compensation scheme. However, 41% of those aware they may be owed compensation didn’t know they would not need to use a CMC or law firm if a redress scheme is introduced.The taskforce is the latest measure by the regulators to improve standards. The FCA has already removed or amended 800 misleading adverts, in excess of 28,000 consumers have been able to exit contracts free of charge, and 3 CMCs reduced their unreasonable fees protecting over 500,000 consumers. Formal investigations are also under way, with 1 announced by the FCA.The SRA regulates more than 9,000 law firms in England and Wales. At 31 January 2026, it had 89 open investigations relating to 71 firms that manage high-volume consumer claims. It has also closed 7 firms working in this area.Previous joint statements:FCA and SRA issue joint warning to firms representing motor finance commission claims.Regulators join forces to tackle poor claims management practices.SRA and FCA warn law firms and claims management companies over poor practices in motor finance commission claims.

On 3 March 2026, we said we’d bring forward our planned review of the UK Listing Rules for Investment entities, including how they apply to board independence and related party provisions.Since then, there has been substantial debate over our role in relation to investment trusts, including calls for us to ‘get to grips’ with voting rules ‘that allow a minority shareholder to repeatedly attack an investment trust’.Much of this debate suggests there are misunderstandings about how investment trusts are governed and where responsibilities sit. We’re concerned this may confuse investors in these trusts. Other calls to action have lacked clear proposals or been based on future hypothetical scenarios for which protections often exist. We want our review to ensure that these rules remain fit for novel circumstances.This blog reminds participants of their powers and responsibilities, clarifies our role, and sets out what our review will cover.

The FCA has fined Dinosaur Merchant Bank Limited (DMBL) £338,000 for failing to put in place effective systems and controls to detect and report suspicious trading in its contracts for difference (CFD) business. CFDs are sophisticated financial products that are used to speculate on various assets going up or down in value. Given their high-risk nature, firms must have strong and reliable surveillance arrangements to prevent insider dealing and market manipulation.In June 2024, DMBL introduced a new order system that led to a sharp increase in CFD trading by its clients. Between June and October 2024, trades with a corresponding asset value of approximately $3.05 billion were executed via the platform. However, these orders and trades were not captured and reviewed by the automated surveillance system which meant that potential market abuse could have gone undetected.Although DMBL identified this issue in October 2024, the firm failed to properly address the deficiencies until May 2025. The delay limited the firm’s ability to identify and report potentially suspicious trading.Steve Smart, joint executive director of enforcement and market oversight, said:‘DMBL’s failures had the potential to undermine the integrity of the market. Firms must ensure they have effective surveillance arrangements in place. We will continue to take action where this is not the case.’DMBL fully cooperated with the FCA investigation and qualified for a 30% discount. Without this discount, the fine would have been £482,900. The firm stopped selling CFDs in May 2025. This case, taking just 9 months from opening to achieving a public outcome, demonstrates the FCA’s continued work to improve the pace of its enforcement investigations.Notes to editorsFinal Notice: Dinosaur Merchant Bank Limited (PDF).DMBL breached Article 16(2) of the UK Market Abuse Regulations (UK MAR), SYSC 6.1.1R of the Senior Management Arrangements, Systems and Controls chapter of the FCA’s Handbook and Principle 3 of the FCA’s Principles for Businesses.Market abuse surveillance systems serve to protect the integrity of financial markets, foster investor confidence and ensure fair trading by detecting, preventing and reporting illegal activities like insider dealing and market manipulation. They enable firms to comply with regulations (eg, UK MAR and the Market Abuse Directive on Criminal Sanctions) by analysing trade data for suspicious behaviour, such as spoofing or front-running, to identify misconduct at an early stage.For further information on market abuse surveillance, read the FCA’s newsletter on market abuse surveillance and market abuse peer review into firms that offer CFDs.Find out more about the FCA.

As part of ongoing improvements to My FCA, and following the successful removal of RegData sign in at the end of last year, we have now removed direct access to Connect and the Online Invoicing System. Firms do not need to take any action. All existing RegData, Connect and Online Invoicing links and bookmarked pages will now automatically redirect to My FCA, where you can access all systems from a single homepage without signing in again. This makes managing your regulatory tasks quicker and more efficient.One year of My FCAOne year on from launch, My FCA has proven to be a real success. It’s now used by all firms, providing a streamlined, effective way to manage regulatory tasks. Engagement continues to grow, feedback has been strong, and My FCA is now firmly embedded as a key part of firms’ regulatory journey.Jessica Rusu, the FCA's chief data, intelligence and information officer said: 'One year into My FCA and we’re delivering on our ambition to be a smarter, more efficient regulator. We’ve taken firms’ feedback and turned it into a simpler, clearer regulatory experience.'