S&U — FCA redress proposals give certainty

S&U has issued a statement regarding the Financial Conduct Authority’s (FCA) motor finance redress scheme. The company confirmed that the motor finance business, Advantage, will not have a material exposure to claims, and limited redress should be payable. This additional clarity reinforces our long-standing view that Advantage acted in its customers\' best interests having never offered discretionary commission arrangements (DCA) or engaged in tied commissions. The market reacted positively with S&U shares up c 8% immediately following the statement. This should put to rest any existential worries about Advantage, allowing trend growth to resume and further support earnings for the broader business.