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Last month was significant for developments in financial services with the announcement of the Leeds Reforms and the Chancellor’s Mansion House speech.
United Kingdom
Finance and Banking
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Last month was significant for developments in financial
services with the announcement of the Leeds Reforms and the
Chancellor’s Mansion House speech. The Leeds Reforms mentioned
radical changes in the UK mortgage regime to facilitate sustainable
home ownership and enhance access for mortgage borrowers in line
with the Government’s growth agenda for financial services. In
this issue we discuss some of these reforms and relevant
considerations for firms to assess how these changes may impact
their systems and processes for mortgage lending. This newsletter
also covers an update on the upcoming regulation of Buy Now Pay
Later (BNPL) including the recent consultation from the Financial
Conduct Authority setting out the proposed regulatory regime for
BNPL. Last but not the least, we share our insights into the
landmark Motor Commission Supreme Court Judgment – Hopcraft and
another v Close Brothers Limited where we explore the judgment
in greater detail, including key takeaways, broader implications,
and the potential impact on future motor finance litigation.
Mortgage reforms to boost sustainable home ownership and
access
Last month was significant for developments in financial
services with the announcement of the Leeds Reforms and the
Chancellor’s Mansion House speech. The Leeds Reforms mentioned
radical changes in the UK mortgage regime to facilitate sustainable
home ownership and enhance access for mortgage borrowers in line
with the Government’s growth agenda for financial services. In
this issue we discuss some of these reforms and relevant
considerations for firms to assess how these changes may impact
their systems and processes for mortgage lending.
Read our insights on these key reforms and
possible impacts on relevant firms
Regulation of Buy Now Pay Later and FCA consultation
Significant progress has been made in the last two months in
shaping the regulation of Buy Now Pay Later (BNPL). The Government
passed legislation on 14 July to bring Deferred Payment Credit
(DPC), commonly known as BNPL, under regulation starting 15 July
2026 for third-party lenders, and on 18 July the Financial Conduct
Authority (FCA) published a Consultation Paper (CP25/23) on the
proposed regulatory regime for BNPL.
Read more here on the FCA’s proposed regime
for BNPL and the upcoming milestones
Motor Commission Supreme Court Judgment – Hopcraft and another
v Close Brothers Limited
On Friday 1 August, the UK Supreme Court handed down its
long-awaited judgment in the conjoined appeals of Hopcraft v
Close Brothers, Johnson v FirstRand Bank t/a MotoNovo Finance, and
Wrench v FirstRand Bank t/a MotoNovo Finance ([2025] UKSC 33).
The Court held that car dealers arranging motor finance do not owe
fiduciary duties to customers, meaning lenders are not liable for
bribery or dishonest assistance. However, undisclosed commissions
may still render agreements unfair under section 140A of the
Consumer Credit Act, depending on the facts. In our p below, we
explore the judgment in greater detail, including key takeaways,
broader implications, and the potential impact on future motor
finance litigation.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.