Motor finance commission: FCA addresses regulatory framework in letter to HoL FSR Committee
The Financial Conduct Authority (FCA) has published a letter from its chief executive, Nikhil Rathi, to Lord Forsyth of Drumlean of the House of Lords Financial Services Regulation (FSR) Committee, addressing the regulatory framework for motor finance commission, with a focus on commission disclosure rules for credit brokers. The letter responds to questions from Lord Forsyth regarding the relevant FCA rules and Principles concerning both discretionary and fixed commissions, both prior to, and following relevant amendments in 2021, and whether the FCA took legal advice both in connection with its decision to ban discretionary commission arrangements (DCAs) (which it did in 2021) and in connection with the FCA’s relevant regulatory rules and Principles.