Content Gen Dashboard

On March 2026, the Financial Conduct Authority (FCA) published its annual Regulatory Priorities report for the consumer finance sector, replacing more than 40 previous portfolio letters. The report sets out the FCA's supervisory focus areas across the credit market, which serves over 45 million people in the United Kingdom. The FCA has identified three primary priorities for consumer finance firms. First, consumers should access credit that meets their needs through responsible lending and innovation, including support for currently excluded consumers through alternative data sources such as open banking and improved credit reporting. Second, firms must support consumers struggling with debt by providing accessible support without unnecessary barriers, improving forbearance and ensuring high-quality debt advice. Third, consumers should receive appropriate redress when things go wrong, with firms maintaining adequate complaint handling procedures and financial resources. The report addresses several key developments. The FCA will implement a potential motor finance redress scheme, with final rules expected in March 2026, to address liabilities for consumers treated unfairly. Deferred Payment Credit (unregulated buy now pay later) products from third-party lenders will come under FCA regulation effective 15 July 2026. The FCA will modernise the redress system in partnership with the Financial Ombudsman Service, with a joint policy statement expected in the second half of 2026. Additionally, the FCA will review the high-cost short-term credit price cap and publish findings on the Credit Information Market Study remedies, with final rules expected in the second half of 2026. The report emphasises the FCA's commitment to data-driven oversight, supporting innovation through its Innovate function, and taking proportionate action where harm is identified. Firms are encouraged to review the priorities and engage with the FCA as it refines its supervisory model.

On March 17, 2026, the Financial Conduct Authority (FCA) published its regulatory priorities report on consumer finance. This report will be published annually and replaces the portfolio letters the FCA used to issue. The report focuses on three priorities and sets out expectations of firms beneath each: Ensuring consumers can access credit that meets their needs. Continue to offer well-designed credit products that are fair value and meet consumers’ needs.. Consider how to help currently excluded consumers through means such as innovation, budgeting tools or referrals. Continue to offer well-designed credit products that are fair value and meet consumers’ needs.. Consider how to help currently excluded consumers through means such as innovation, budgeting tools or referrals. Supporting consumers who struggle with debt. Firms should make sure consumers can access support without unnecessary barriers, acting proactively to help borrowers in financial difficulty. Debt advice must be appropriate to consumers’ circumstances with clear communications so consumers can make well-informed decisions. Firms should make sure consumers can access support without unnecessary barriers, acting proactively to help borrowers in financial difficulty. Debt advice must be appropriate to consumers’ circumstances with clear communications so consumers can make well-informed decisions. Ensuring consumers can complain when things go wrong and get appropriate redress. Firms must properly identify and deal with complaints, keep adequate records, undertake root cause analysis and hold sufficient financial resources to meet potential and actual liabilities. Firms should prepare to work with the FCA on a potential motor finance redress scheme to address the liabilities for those treated unfairly. Claim management companies (CMCs) should deliver high-quality, fair-value services that help consumers pursue legitimate claims for redress. Firms must properly identify and deal with complaints, keep adequate records, undertake root cause analysis and hold sufficient financial resources to meet potential and actual liabilities. Firms should prepare to work with the FCA on a potential motor finance redress scheme to address the liabilities for those treated unfairly. Claim management companies (CMCs) should deliver high-quality, fair-value services that help consumers pursue legitimate claims for redress. The report also highlights other areas of focus such as the deferred payment credit, consumer duty, the impact of artificial intelligence and the Senior Managers and Certification Regime.

meta_id 2974624

Generated

United Kingdom's Financial Conduct Authority Publishes Consumer Finance Regulatory Priorities for 2026

Agent draft

Published

UK’s Financial Conduct Authority Publishes Report on Its Regulatory Priorities for Consumer Finance