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FCA Update For Motor Finance Firms On Financial Resources And Complaints Handling

Wednesday, 17 April 2024

The FCA has released an update for motor finance firms setting out their expectations that firms must maintain adequate financial resources, as well as continue to investigate complaints received regarding discretionary commissions.

While their full investigation into discretionary commission arrangements (DCA) is ongoing, with the next steps expected by the 24th September, the FCA has given further guidance on what they expect from the sector.


Firms are advised to undertake an analysis of their individual financial circumstances and plan for any additional operational costs from increased complaints and, where applicable, to meet the costs of resolving those complaints.


The FCA’s expectations include that motor finance firms should:

  • Continue to investigate complaints they receive involving a DCA.
  • Consider the Information Commissioner’s Office guidance on responding to data subject access requests.
  • Notify the FCA if they are involved in any litigation relating to motor finance commissions.

This latest update indicates that while the FCA has put a pause on fully handling commission complaints, they are still expecting activity regarding these complaints to continue behind the scenes in preparation for the conclusions of their investigation. 

At EQ, we have spoken to many clients who are treating this as a separate exercise as well as those who are adding it to BAU operations. Our range of services and solutions, including specialist additional resources, capacity planning consultancy, and dedicated complaint-handling technology, can help your business manage this cost-effectively and efficiently.

Find out more about how we are supporting the motor finance sector, including our fellow FLA members, and get in touch today to discuss how we can support your business.

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