UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
October
22, 2025
Barclays PLC
(Name
of Registrant)
1 Churchill Place
London E14 5HP
England
(Address
of Principal Executive Office)
Indicate
by check mark whether the registrant files or will file annual
reports
under
cover of Form 20-F or Form 40-F.
Form
20-F x Form 40-F
This
Report on Form 6-K is filed by Barclays PLC.
This
Report comprises:
Information
given to The London Stock Exchange and furnished pursuant
to
General
Instruction B to the General Instructions to Form 6-K.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
|
|
BARCLAYS
PLC
|
|
|
(Registrant)
|
Date:
October 22, 2025
|
|
By: /s/
Garth Wright
--------------------------------
|
|
|
Garth
Wright
|
|
|
Assistant
Secretary
|
22 October 2025
Barclays PLC
Update in relation to compensation scheme for motor finance
customers
Following the publication of the Financial Conduct Authority's
("FCA") consultation paper CP25/27 on a proposed Motor
Finance redress scheme on 7 October 2025, Barclays PLC
("Barclays") has reassessed its provision for this matter as
of 30 September 2025.
Barclays and Clydesdale Financial Services Limited
("CFSL") (a subsidiary of Barclays) 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. The additional charge of
£235m will be recognised in Barclays' Q3 2025 results and is
estimated to reduce Barclays PLC's Common Equity Tier 1 (CET1)
capital ratio by approximately 5 bps. The 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, which is less closely linked to actual
customer loss (if any) than previously anticipated. 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 cost of redress
based on the information available to Barclays, including the
proposals as set out in the FCA's consultation paper, and applying
a probability-weighted outcome that considers a range of
scenarios.
Barclays is committed to providing fair redress to motor finance
customers who have a valid claim against CFSL for loss. We are
however, of the view that the scope of the scheme and proposed
approach to redress outlined in the consultation paper do not
accurately address actual loss (if any) suffered by customers and
do not achieve a proportionate or appropriate outcome. Barclays
intends to make representations to the FCA accordingly, to review
the FCA's response carefully, and take such other steps as it deems
appropriate to achieve a fair and just outcome.
For further information, please contact:
Investor Relations Media
Relations
Marina Shchukina
Jon Tracey
+ 44 (0) 207 116 2526
+44 (0) 7552214868
About Barclays
Our vision is to be the UK-centred leader in global finance.
We are a diversified bank with comprehensive UK consumer, corporate
and wealth and private banking franchises, a leading investment
bank and a strong, specialist US consumer bank. Through these
five divisions, we are working together for a better financial
future for our customers, clients and communities.
For further information about Barclays, please visit our
website home.barclays
Forward-looking statements
This document contains forward-looking statements within the
meaning of Section 21E of the US Securities Exchange Act of 1934,
as amended, and Section 27A of the US Securities Act of 1933, as
amended, with respect to the Group ("Barclays"). Barclays cautions
readers that no forward-looking statement is a guarantee of future
performance and that actual results or other financial condition or
performance measures could differ materially from those contained
in the forward-looking statements. Forward-looking statements can
be identified by the fact that they do not relate only to
historical or current facts. Forward-looking statements sometimes
use words such as 'may', 'will', 'seek', 'continue', 'aim',
'anticipate', 'target', 'projected', 'expect', 'estimate',
'intend', 'plan', 'goal', 'believe', 'achieve' or other words of
similar meaning. Forward-looking statements are based on the
current beliefs and expectations of Barclays' directors, officers
and employees and are subject to significant risks and
uncertainties. Actual outcomes may differ materially from those
expressed in the forward-looking statements. In setting its targets
and outlook for the period 2024-2026, Barclays has made certain
assumptions about the macroeconomic environment, including, without
limitations, inflation, interest rates, the different markets and
competitive conditions in which Barclays operates, and its ability
to grow certain businesses and achieve costs savings and other
structural actions. Factors that could impact Barclays' future
financial condition and performance are identified in Barclays
PLC's filings with the SEC (including, without limitation, Barclays
PLC's Annual Report on Form 20-F for the financial year ended 31
December 2024), which are available on the SEC's website
at www.sec.gov.
Subject to Barclays' obligations under the applicable laws and
regulations of any relevant jurisdiction (including, without
limitation, the UK and the US) in relation to disclosure and
ongoing information, we undertake no obligation to update publicly
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.
- ENDS -
