FirstRand challenges UK motor finance redress scheme proposal

FirstRand Limited has issued an update regarding a UK motor commission matter, noting a statement and consultative paper from the UK's Financial Conduct Authority (FCA) on October 7, 2025. The paper outlines a proposed redress scheme for commission practices in the UK motor finance industry. FirstRand's initial view is that the scheme appears to exceed what the group considers proportionate or reasonable.

The company further states that the scheme, in its current form, does not align with the legal clarity provided by the recent UK Supreme Court, which emphasized assessing unfairness based on a combination of specific facts. FirstRand plans to consult with the FCA promptly to address these issues and seek clarification on data inconsistencies within the consultative paper.

FirstRand commits to updating shareholders immediately once it gains further clarity on its next steps, potentially before the six-week period specified by the FCA. Rand Merchant Bank, a division of FirstRand Bank Limited, is the sponsor of this announcement.