Overview

• The FCA will seek industry feedback by early October on compensating customers affected by discretionary commission arrangements banned in 2021 across deals from 2007 to 2021.
• The consultation document will outline eligibility criteria, the method for calculating redress and a timeline for disbursing first payments in 2026.
• Regulators estimate the total bill for the compensation scheme will fall between £9 billion and £18 billion, with most individual awards below £950.
• The move follows a July Supreme Court decision that largely overturned earlier judgments but upheld at least one unfair-relationship claim over hidden commissions.
• The FCA says the redress framework will prioritise an orderly, consistent and efficient process that limits reliance on third-party claims management firms.