FTSE 250 movers: Close Brothers tumbles; Burberry in fashion
By Michele Maatouk
Date: Friday 25 Oct 2024
(Sharecast News) - London's FTSE 250 was up 0.3% at 20,843.92 in afternoon trade on Friday.
Close Brothers was the standout loser after the Court of Appeal ruled in favour of British consumers that motor dealers acting as credit brokers owe a fiduciary duty to their customers.
Close Brothers said in a statement that it plans to appeal the decision and that it will be temporarily pausing the writing of new UK motor finance business "while we review and implement any relevant changes to our documentation and processes to ensure compliance with these new requirements".
Hopcraft's case was against Close Brothers, while Johnson's was against Firstrand Bank and Motonovo Finance. Wrench's case was against Firstrand.
The Court of Appeal said: "The dealers were the sellers of the cars, but they were also acting as credit brokers on behalf of the claimants. In the latter role, their task was to search for and offer the customer a finance deal from their panel of lenders which was suitable for their needs and competitive.
"In some cases they undertook to find the best deal or the one which was most suitable for the customer."
Close Brothers said it "disagrees with the Court's extension of the existing case law in this area and intends to appeal this decision to the UK Supreme Court".
It said the financial impact of the Hopcraft case in isolation was not material to the group.
"However, subject to the appeal to the UK Supreme Court, the judgment may set a precedent for similar claims, which may (depending on the specific facts of those cases) result in significant liabilities for the group."
On the upside, luxury fashion brand Burberry was among the top gainers.
FTSE 250 - Risers
Bloomsbury Publishing (BMY) 760.00p 11.44%
Softcat (SCT) 1,695.00p 10.64%
Burberry Group (BRBY) 773.80p 8.68%
Indivior (INDV) 695.50p 6.43%
Watches of Switzerland Group (WOSG) 453.40p 4.61%
Kainos Group (KNOS) 827.00p 3.89%
Trustpilot Group (TRST) 246.00p 3.80%
IP Group (IPO) 47.25p 3.62%
CMC Markets (CMCX) 327.50p 3.48%
Harbour Energy (HBR) 276.40p 2.98%
FTSE 250 - Fallers
Close Brothers Group (CBG) 314.20p -14.76%
Abrdn (ABDN) 141.35p -13.78%
Travis Perkins (TPK) 876.00p -4.99%
Inchcape (INCH) 724.50p -4.98%
Pennon Group (PNN) 564.00p -4.89%
Wetherspoon (J.D.) (JDW) 674.00p -4.46%
Jupiter Fund Management (JUP) 80.20p -4.07%
Kier Group (KIE) 143.60p -3.88%
PureTech Health (PRTC) 150.80p -3.70%
Chemring Group (CHG) 358.00p -3.24%
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