FirstRand wins UK Supreme Court motor finance appeal

FirstRand won its main appeal at the UK Supreme Court, with judges ruling that motor dealers do not owe customers a fiduciary duty when arranging finance as credit brokers.

However, the court found an "unfair relationship" in the Johnson case, ordering commission repayment. The judgment does not set a precedent as unfairness is fact-specific.

FirstRand's data shows agreements with commissions of 55% or above represent just 4% of total agreements and 7% of commissions paid over 18 years. The company may need to update its accounting provision following the UK Financial Conduct Authority's proposed 2026 redress scheme.