FCA Publishes September 2026 Non-Legal Handbook Corrections, Including Motor Finance Redress Rules

Key Takeaways

• The FCA's September 2026 list of non-legal corrections and clarifications updates several Handbook provisions, most notably formalizing detailed record-keeping and notification requirements for the motor finance commission consumer redress schemes (CONRED) and updating DISP compensation limits.
• While described as having no legal effect or policy change, firms involved in motor finance redress must note the extensive new tabular record-keeping and reporting obligations now embedded in CONRED Sch 1 and Sch 2.

Deep Dive

This update is presented by the FCA as a housekeeping exercise—non-legal corrections and clarifications that do not represent a change in policy. However, the substance embedded within this document is significant, particularly the insertion of detailed record-keeping (CONRED Sch 1.4G, 1.5G) and notification (CONRED Sch 2.3G) requirements tied to the Motor Finance Commission Consumer Redress Schemes covering both the 2007-2014 and 2014-2024 periods. Although framed as "editor's notes" converting existing rules into tabular format, these tables consolidate extensive obligations on lenders and credit brokers regarding communications, settlement offers, redress determinations, and consumer file documentation, each subject to a five-year retention period.

Firms engaged in motor finance redress activity should pay close attention to the granular notification and reporting cadence outlined in the underlying CONRED 5.9 provisions referenced here, including one-off information submissions within six weeks of the scheme effective date, monthly baseline and detailed reports, and quarterly forecast reports. These reports require granular data on complaint volumes, professional representative involvement, redress determinations, settlement offer acceptance/rejection rates, and use of rebuttal provisions (e.g., consumer knowledge rebuttal, unused tie rebuttal). Senior manager attestations are also required, reinforcing individual accountability under the Senior Managers and Certification Regime (SMCR).

Separately, the update confirms an increase in the DISP 3.7.4R compensation limits, effective for complaints referred on or after April 1, 2026, raising the limit for acts/omissions occurring on or after April 1, 2019 to £205,000 (from £200,000) and for the broader category to £455,000 (from £445,000). This is an administrative inflation-linked adjustment but directly affects complaint-handling teams' calculation of maximum redress awards from the Financial Ombudsman Service.

Compliance teams should: (1) update internal record-keeping and data governance systems to align with the CONRED 5.9/5.10/6.10 tabular requirements, ensuring five-year retention capability; (2) verify complaint-handling and redress calculation systems reflect the updated DISP compensation caps; (3) confirm senior manager designations and attestation processes are in place for motor finance redress oversight; and (4) monitor for further Handbook Administration instruments, as this document explicitly excludes legally effective changes made through that separate mechanism. While labeled non-legal, the operational burden of the CONRED reporting framework is substantial and warrants proactive resourcing, particularly for firms with legacy motor finance commission exposure.

Source: Financial Conduct Authority