UK Retail Finance Horizon Scanner - June 2026

In the latest edition of our UK Retail Finance Horizon Scanning report, we highlight recent industry updates and developments emerging in the following areas:

• Consumer credit: motor finance remains in focus, with the FCA confirming that compensation payments under its proposed scheme are now unlikely to begin before 2027. Firms are expected to continue preparing for both a compensation scheme and a complaints led redress approach. The FCA has also set out its wider vision for the future of consumer credit, with continued focus on customer outcomes, AI governance and Buy Now Pay Later implementation.

• Mortgages: mortgage reform continues to progress, with the FCA consulting on targeted changes to improve access for creditworthy but underserved borrowers. The FCA has also signalled further work on later life lending, including retirement interest-only mortgages, market study activity and the role of better advice, technology and product design. 

• Conduct: the FCA has warned firms about misleading motor finance claims advertising, including social media promotions that may not make commercial arrangements or consumer rights clear. Firms involved in claims management, legal services or related marketing activity should review advertising, customer acquisition and disclosure practices. 

• Innovation: AI and open finance remain key areas of regulatory attention. Recent updates include further Government measures to support AI adoption, FCA commentary on regulation in the age of AI, continued work on open finance and the FCA’s Smart Data Accelerator.

• Consumer Duty: financial inclusion remains an important theme, with firms encouraged to consider how access, vulnerability, fair value, digital inclusion and inclusive product design may shape future regulatory expectations. 

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