One of the most senior former regulators in Britain has blamed the Financial Conduct Authority for the crisis shaking the motor finance industry, saying the lack of clarity in its rulebook was to blame.
Sir Howard Davies, the former chairman of the FCA’s predecessor body, the Financial Services Authority, said he was disappointed by the role of the FCA, adding that the crisis “has caused a lot of anxiety”.
Many credit providers have suspended lending on new and used cars as they scramble to adjust their processes in the light of the Court of Appeal judgment on Friday, which set a much higher bar for disclosure of commissions.
Shares in providers ranging from Lloyds Banking Group and Close Brothers have tumbled on shareholder fears