Close Brothers Says Can Handle Costs of Motor Finance Plan

Close Brothers Group Plc said it’s adequately covered against the estimated cost related to the misselling of car loans, marking a boost for the London-listed firm after short-seller Viceroy Research claimed its provisions for compensation were too small.

The specialized lender said in a Wednesday statement that the Financial Conduct Authority’s latest guidance suggests it will face a cost of £320 million ($430 million) related to compensating customers who were missold car loans. That’s “broadly similar” to the £294 million provision it detailed at the end of January, which is under review.