The FCA has written to the Supreme Court supporting the application of the lenders in the Hopcraft, Wrench and Johnson motor finance commission cases for expedition of the court’s decision on the application to appeal.
The letter explains the FCA’s role in supervising the conduct of motor finance business and notes that the applications “raise a number of important points of law in relation to the law of bribery and fiduciary duties”, impacting both backward looking compensation liabilities and forward looking changes to business models.
The FCA confirms there are thousands of cases pending in the County Court and before the FOS, and “it is highly desirable” that these proceed “on the correct interpretation of the legal principles and to avoid inconsistent outcomes”.
The letter goes on to explain the significant provisions some firms have already made in relation to potential costs, and that some analysts have increased their forecasts for the likely size of compensatio
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