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UK regulator open to refining motor finance redress plan, Rathi says

Published by Global Banking & Finance Review

Posted on December 3, 2025

1 min read

· Last updated: January 20, 2026

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UK regulator open to refining motor finance redress plan, Rathi says
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LONDON, Dec 3 (Reuters) - Britain's Financial Conduct Authority (FCA) could "adjust and refine" a proposal for a multi-billion-pound motor finance redress package if it sees convincing, evidence-based

FCA Considers Refining Motor Finance Redress Proposal

LONDON, Dec 3 (Reuters) - Britain's Financial Conduct Authority (FCA) could "adjust and refine" a proposal for a multi-billion-pound motor finance redress package if it sees convincing, evidence-based feedback during a consultation, its chief executive said on Wednesday.

FCA chief Nikhil Rathi told the FT Global Banking Summit the watchdog had received "lively" feedback on its proposals for a compensation scheme that it has estimated could cost the industry around 11 billion pounds ($14.8 billion).

The consultation ends on December 12.

(Reporting by Phoebe Seers, editing by Kirstin Ridley)

Key Takeaways

  • FCA open to adjusting motor finance redress plan.
  • Feedback could influence the £11 billion proposal.
  • Consultation period ends on December 12.
  • Nikhil Rathi discusses feedback at FT Global Banking Summit.
  • The proposal aims to address industry compensation.

Frequently Asked Questions

What is the Financial Conduct Authority?
The Financial Conduct Authority (FCA) is a regulatory body in the UK responsible for overseeing financial markets and protecting consumers by ensuring that financial firms operate fairly and transparently.
What is motor finance?
Motor finance refers to various financial products that help consumers purchase vehicles, often involving loans or leasing agreements that allow individuals to pay for their vehicles over time.
What is a compensation scheme?
A compensation scheme is a structured program designed to provide financial restitution to individuals or businesses that have suffered losses due to specific circumstances, such as regulatory breaches or financial misconduct.
What is a consultation in finance?
A consultation in finance typically refers to a period during which stakeholders, including regulators and industry participants, provide feedback on proposed regulations or policies before they are finalized.

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