(This Feb. 7 story has been corrected to say ‘car finance,’ not ‘car insurance,’ in the headline and paragraph 1)
LONDON (Reuters) – The financial fallout from a regulatory probe into potentially unfair commission charged on customers for car finance is not expected to undermine financial stability, Bank of England Deputy Governor Sam Woods said on Wednesday.
Analysts have said that banks caught up in the Financial Conduct Authority’s investigation could face a redress bill totalling billions of pounds.
Woods said the Bank has been closely engaged with the FCA, but that the range of financial outcomes seems quite wide and that the “devil will be in the detail” given there were so many different commission structures.
“I am not concerned at this point that this is a financial stability issue, but it clearly does have the potential to become a quite significant conduct issue with potentially quite significant financial ramifications,” Woods said.
(Reporting by Huw Jones; editing by Jonathan Oatis)
