Close Brothers Group PLC on Wednesday said the UK Supreme Court gave it permission to appeal October’s judgment, itself from the Court of Appeal, in the Hopcraft motor finance commissions case.
The London-based bank, broker and asset manager said this followed its application for permission to appeal, which it had submitted on November 22.
Close Brothers added that it will not be commenting further on the ongoing appeals process and will make further announcements when appropriate.
The Supreme Courts’ decision follows the UK Financial Conduct Authority, which last month said it would consult on extending the time motor finance firms have to handle complaints about commission payments.
The FCA’s decision had followed the Court of Appeal’s judgment in late October, in Hopcraft versus Close Brothers Ltd; Johnson versus Firstrand Bank Ltd; and Wrench versus Firstrand Bank Ltd.
In the ruling, the court had sided with consumers. It had determined that motor dealers acting as credit brokers owe both a disinterested duty and a duty of loyalty to their customers.
Secure Trust Bank PLC had warned that underlying continuing pretax profit in 2024 will be ‘materially’ below market expectations, citing the ruling. The company provides motor finance through the V12 Vehicle Finance and Moneyway brands.
Close Brothers shares jumped 10% to 262.20 pence each on late Wednesday morning in London, while shares in Secure Trust Bank jumped 8.9% to 378.82p each. FirstRand Ltd shares were down 0.4% to R 80.30 each in the afternoon in Johannesburg.
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