Regulatory update: Motor finance redress, reporting, and simplified advice

 This month David Morrey and Ben Farmer unpack the Financial Conduct Authority's (FCA) final motor finance redress scheme rules — including the decision to run two schemes and what that signals about potential legal challenge and delivery timelines. They also cover the regulators’ operational incident and third‑party reporting final rules (and what firms should be doing now, ahead of the March 2027 start date), plus the FCA’s consultation on simplified advice and what “limited scope” could mean in practice.   Finally, they round off with a rapid scan of AI in regulation — from the FCA’s own use of AI to triage and review information, to the Prudential Regulation Authority's (PRA) expectations on governance, and the Financial Ombudsman’s early observations on AI‑generated complaints — before closing on the PRA’s fine against Direct Line and what the “early account” approach tells us about regulatory engagement.