On 5 June 2025, the Financial Conduct Authority (FCA) published a statement setting out some of the things it will need to consider should it introduce a redress scheme as part of its review into motor finance commission arrangements.

The FCA states that whilst it is not possible to predict the outcome of the Supreme Court’s judgment it is engaging with stakeholders now as it wants to be able to act as quickly as possible once the judgement has been handed down. For example, given the pre-consultation engagement, the FCA may decide on a shorter than normal consultation window.

The statement covers:

  • The principles of a redress scheme. These principles – comprehensiveness, fairness, certainty, simplicity and cost effectiveness, timeliness, transparency and market integrity – will guide the FCA when designing a redress scheme and there may be tensions between some of them.
  • Scope of a redress scheme. This includes opt-in (customers would have to confirm to their firm by a certain date that they wish to be included) and opt-out (customers are automatically included unless they opt out) and also how redress should be calculated.

Next steps

The FCA will confirm within 6 weeks of the Supreme Court judgment whether it is proposing to introduce a redress scheme. If so, it will set out timings for when it will issue a consultation paper. Subject to the consultation the FCA would expect firms to implement the scheme in 2026.