Financial Services & Secret Commissions: Latest Case Law & Regulatory Guidance

Introduction

Post-Johnson, Wrench & Hopcroft - where are we now?

Since the advent of the PPI mis-selling scandal, the law on secret commissions has taken centre stage in legal developments, and there has been a recent focus on mis-sold car finance or ‘PCP mis-selling’ cases.

There have been several high-profile cases which have shifted the way in which commissions can legally be paid including the very recent consideration by the Supreme Court in 2025 of these issues.

This new seminar will cover those new developments, including the law on unfair relationships, secret commissions, and what claims may or may not succeed. There will be time to explore real-life situations to put into practice the law learnt.

The session is aimed at legal practitioners and in house counsel who may be involved in issues which relate to the payment of commissions in financial services.

What You Will Learn

This course will cover the following:

• What are commissions?
• Definition
• Main industries they are found in
• Typical structures that may be found (concentration on uplift commission structures)
• Relationships with those who earn commissions
• What is a credit intermediary?
• Fiduciary relationships
• Vulnerability of consumers
• History of commissions
• Secret commissions as a bribe - and whether bribery applies at all
• Fraud
• Requirement for dishonesty?
• Regulation
• Provisions governing payment of commissions in the FCA Handbook (CONC)
• Should the consumer always be informed of commissions?
• The FCA’s stance on the payment of commissions
• Secret commissions - caselaw
• Hurstanger Ltd v Wilson
• Plevin v Paragon Personal Finance Ltd
• McWilliam v Norton Finance (UK) Ltd (in liquidation)
• Wood v Commercial First Business Ltd & Ors and Business Mortgage Finance 4 plc v Pengelly
• Canada Square Operations Ltd v Potter
• Johnson, Wrench & Hopcroft v FirstRand and Close Brothers
• Expert Tooling v Engie Power
• Half-secret v fully secret commissions - does the distinction still exist?
• Unfair relationship claims
• Remedies
• Disgorgement of commissions
• Rescission as of right?
• Account of profits
• Limitation and deliberate concealment