Further update re FCA Motor Finance redress scheme

Summary by AI ^BETAClose X

Secure Trust Bank PLC has assessed the Financial Conduct Authority's final rules for UK motor finance commissions and currently sees no need to adjust its motor finance commission provision, although the ultimate financial impact remains uncertain due to factors requiring judgment, further clarification, dealer cooperation, and potential legal challenges. The Group believes its vehicle finance lending was fair and competitive, and while committed to customer redress for harm from unfair relationships, it disagrees with the FCA's assessment of unfairness, finding it misaligned with the Supreme Court's fact-specific judgment in Johnson v FirstRand.

Disclaimer*

Secure Trust Bank PLC

10 April 2026

Secure Trust Bank PLC

10 April 2026

For immediate release

SECURE TRUST BANK PLC

Further update relating to FCA Motor Finance redress scheme

Secure Trust Bank PLC ("STB" or the "Group") has undertaken an initial assessment of the potential impact of the final rules recently announced by the Financial Conduct Authority ("FCA") for the industry wide schemes relating to UK motor finance commissions.

Following this assessment, the Group does not consider that any adjustment to its motor finance commission provision is currently necessary. While there have been some welcome developments in the final rules, the ultimate financial impact remains uncertain due to a number of factors. These include several areas requiring judgement, the need for further clarification on the application of the rules, information and assistance required from vehicle dealers/brokers and the outcome of any legal challenges. The Group continues to monitor developments closely.

STB believes that its vehicle finance lending was designed to provide competitive, fair, finance to its selected customer segments. The Group remains committed to ensuring customers receive appropriate redress where there has been customer harm from an unfair relationship. However, it considers that the FCA's approach to assessing unfairness is not aligned with the Supreme Court judgment in Johnson v FirstRand, where the test for unfairness is highly fact specific and must take into account all relevant factors.

Enquiries:

Secure Trust Bank PLC

Ian Corfield, Chief Executive Officer

Rachel Lawrence, Chief Financial Officer

Phil Deakin, Strategy and Corporate Development Director

Tel: 0121 693 9100

Investec Bank plc (Joint Broker)

Christopher Baird

David Anderson

Maria Gomez de Olea

Tel: +44 (0) 20 7597 5970

Shore Capital Stockbrokers (Joint Broker)

Mark Percy / Sophie Collins (Corporate Advisory)

Oliver Jackson / Ansh Batura (Corporate Broking)

Tel: +44 (0) 20 7408 4090

Camarco

Geoffrey Pelham-Lane, Amrith Uppuluri

securetrustbank@camarco.co.uk

Tel: +44 (0) 7733 124 226, +44 (0) 7763 083 058

About STB

STB is an established, well‐funded and capitalised UK retail bank with a more than 72‐year trading track record. STB operates principally from its head office in Solihull, West Midlands. The Group's diversified lending portfolio focuses on two lending sectors supported by a strong deposits franchise:

(i) Business Finance under the Secure Trust Bank brand; and

(ii) Consumer Finance through its V12 Retail Finance division.

Secure Trust Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Secure Trust Bank PLC, Yorke House, Arleston Way, Solihull, B90 4LH.

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