Close Brothers has been running the rule over the amount it plans to set aside for a motor finance commission payout.
It said the group has set aside £165m in the H1 2025 financial statements in relation to motor commissions.
“This includes estimates for certain potential operational and legal costs, as well as estimates for potential remediation for affected customers.
“The estimated provision is based on probability weighted scenarios using various assumptions.
“These include, for example, commission models, rates and time periods in scope of any regulatory redress scheme, as well as response and uphold rates.
“The estimated provision is the outcome of a thorough assessment, representing the group’s current evaluation based on available information and recent developments.”
It said there was still “significant uncertainty” as to the range of outcomes from the motor commissions appeals and the FCA’s ongoing review of motor commissions and the ultimate cost to the group could be higher or lower than the £165m already allocated.
