Accounting implications of motor finance compensation scheme

Azhar Rana, partner at PKF Littlejohn, explains the accounting implications for lenders reporting under FRS 102 from going concern to loan covenants and KPIs resulting from the FCA’s proposed motor finance redress scheme

The Financial Conduct Authority’s recent consultation paper CP25/27 proposed an industry-wide redress scheme for UK motor finance customers, with the consultation closed for comment in mid-December.

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