Close Brothers strongly disagrees with Viceroy short report

Close Brothers Group Plc “strongly disagrees” with a report by short-seller Viceroy Research about the amount it’s set aside for motor finance compensation.

The London-listed firm’s shares plunged as much as 18.8% on Monday after Viceroy argued that it could have to double its provisions. Close Brothers previously set aside £300 million ($399 million) to compensate customers who were sold car loans with interest rates pegged to discretionary commissions.

In research published on Monday, however, Viceroy said Close Brothers’ exposure could be between £572 million and £1.07 billion.

ADVERTISEMENT

CONTINUE READING BELOW

“Our provisioning approach in relation to this matter is in accordance with UK-adopted international accounting standards and follows a robust governance process,” Close Brothers said in a statement after market close. The company is due to report earnings alongside a business update on Tuesday.

Viceroy didn’t specify the size of its short position and said its calculation was based on Close Brothers paying compensation on about 90% of its relevant loan book.

Viceroy also raised concerns about Close Brothers’ capital requirements in this scenario, as the firm has already sold assets including Winterflood Securities and Close Brothers Asset Management.

Shares in Close Brothers had already fallen 20.5% so far this year through Friday. The stock has moved sharply on news around the UK’s motor finance compensation program, which reached the Supreme Court last summer. Lenders will need to compensate customers who were not informed about commission arrangements with car dealers, a practice that was banned in 2021.

The Financial Conduct Authority is expected to finalise the redress program for motor finance customers in the coming weeks.

© 2026 Bloomberg

#Close #Brothers #strongly #disagrees #Viceroy #short #report