Company: BCS
Filing Date: 2025-10-22
Form Type: 6-K
Source: 0001654954-25-012054
Chunk: 5

Company: BARCLAYS PLC
Filing Date: 2025-10-22
Form: 6-K
Chunk 5
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 redress      
 scheme on 7 October 2025, Barclays has reassessed its provision for 
 this matter as of 30 September 2025.                                
 Barclays and Clydesdale Financial Services Limited (CFSL) (a        
 subsidiary of Barclays PLC) recognised a provision of £90m in       
 their respective annual reports and accounts for the year ending 31 
 December 2024. This provision (which was reassessed as at 30 June   
 2025) was determined based upon the information then available and  
 estimated the potential impact of remediating any complaints CFSL   
 has received and might receive relating to motor finance commission 
 arrangements.                                                       
 Taking account of the proposals set out in the consultation paper,  
 Barclays has increased the provision recognised by Barclays and     
 CFSL from £90m to £325m (Dec 2024: £90m) resulting                  
 in an income statement charge in Q325 of £235m (Q324:               
 £nil).                                                              
 Barclays has considered the information currently available and     
 currently considers it more likely than not that a redress scheme   
 will be implemented. Barclays has used multiple separate scenarios  
 to estimate the amount of the provision given that the proposed     
 terms of the FCA redress scheme are subject to consultation. The    
 scenarios used incorporate differing evaluations of the FCA's       
 current proposals and have been probability-weighted to estimate    
 the potential redress cost and provision required.                  
 The resulting charge reflects the increased likelihood of a higher  
 number of motor finance cases falling within the scope of the       
 scheme contemplated by the consultation paper (which covers all     
 discretionary commission arrangements), the FCA's proposed approach 
 to customer engagement, and the likelihood of a higher than         
 anticipated level of customer redress reflecting the FCA's proposed 
 methodology for the calculation of redress. Barclays ceased lending 
 in the motor finance market in late 2019, and the above estimates   
 follow the FCA proposal that historical operations from April 2007  
 fall within the scope of the FCA redress scheme.                    
 Barclays notes that the final terms of the compensation scheme      
 remain uncertain pending responses to the consultation paper and    
 publication of the FCA's Policy Statement and final scheme rules,   
 which is currently expected in early 2026. Accordingly, the legal   
 and regulatory outcomes and the nature, extent and timing of any    
 remediation action, if required, remain uncertain. The ultimate     
 financial impact could differ to the amount provided, which         
 represents Barclays' reasonable estimate of the