In this second excerpt from our recent webinar on the FCA’s new motor finance redress scheme, Garry Evans and Mike Morris break down what firms need to do now to prepare effectively. In this segment, they focus on the case for early preparation, exploring practical steps from portfolio assessment and governance to operational design and building internal capability.
The case for early preparation
The FCA’s consultation is a call to action. Preparation is no longer optional; firms that move early will reduce operational stress whilst demonstrating a proactive approach to regulatory compliance. The reality is that waiting until the scheme launches often leads to rushed processes, reactive decision-making and higher operational costs. By contrast, early preparation allows firms to plan, coordinate and deliver with precision.
Portfolio assessment and governance
A thorough portfolio review is the foundation of sound preparation. Now’s the time for firms to make sure that customer records are complete, agreements are accurately classified and historical data is reliable. This requires cross-functional collaboration, often spanning compliance, operations, IT and customer service teams. Establishing robust governance frameworks is equally important. Clear accountability, well-defined roles and structured decision-making processes are critical to navigating the complexity of a large-scale redress initiative.
Automation meets human expertise
Technology can transform remediation operations, particularly when handling high volumes of standard calculations and communications. Yet, automation has its limits and must be complemented by human expertise – for example, complex or exceptional cases require human judgment, discretion and careful review. Firms that design operational workflows combining automation with this expertise strike the ideal balance between efficiency and accuracy to ensure that all cases are handled fairly and consistently.
Building internal capability and resilience
Preparation extends beyond processes. It requires building internal capability where staff need training to understand the intricacies of the scheme, quality assurance mechanisms must be put in place and scenario planning should anticipate potential challenges. Those that invest in these capabilities early are better positioned to deliver accurate redress at scale while maintaining regulatory confidence and customer trust.
The next steps for firms
The opportunity for firms lies in acting decisively now. From refining governance and validating data to designing workflows that blend technology and human judgment, early action mitigates risk and builds operational confidence. By prioritising preparedness, firms not only comply with FCA expectations but also reinforce their reputation as capable, customer-focused organisations.
And we can help you prepare now with one of our two practical, free offerings:
1. Proven redress tech workflow
Our purpose-built motor finance redress workflow, powered by iQcodex, has already processed over one million cases. Firms working with us have:
- Quickly analysed complex datasets
- Prepared agreements and documents for review
- Defined scope determination, tracing and customer contact strategies
- Positioned themselves to implement redress calculations and payments as soon as the FCA finalises its plans
With this foundation in place, they’re ready to act immediately – no delays, no wasted time.
2. Half-day redress strategy workshop
For firms looking to go beyond readiness, our tailored workshop provides a clear, efficient plan for managing redress reviews. Covering everything from:
- Validating your regulatory approach
- Reviewing sales documentation to testing calculations
- Exploring cost-effective resourcing
- Modelling key scenarios
This session gives you the expert guidance needed to ensure your processes are robust and FCA-ready.
