On 1 April 2014 the Government transferred regulatory responsibility for the consumer credit market, including motor finance products, from the Office of Fair Trading (OFT) to the Financial Conduct Authority (FCA). The Government has given the FCA robust powers to protect consumers and supports the work undertaken by the FCA to reduce consumer harm in this sector.
In March 2019 the FCA released the report: Our work on motor finance – final findings. In their report, the FCA expressed concern about the extent to which broker discretion is allowed over interest rates in certain commission structures and said that they are considering possible responses, such as strengthening existing provisions and banning certain commission structures.
As required by the Financial Services and Markets Act 2000 (FSMA), the FCA must undertake detailed cost benefit analysis of their proposals. This assessment was published in October 2019 as part of their ongoing consultation on changes to the rules governing the motor finance industry.