FirstRand issued a voluntary shareholder update after the UK Supreme Court ruled in its favour on key aspects of the Wrench and Johnson motor finance commission cases. The court confirmed that motor dealers do not owe a fiduciary duty to customers, overturning prior findings of dishonesty, although it found an unfair relationship under specific circumstances. FirstRand estimates that only 4% of affected agreements involved commission levels similar to the Johnson case and may adjust its provision accordingly. Earnings are likely to come in at the lower end of its low double digit to mid teens growth guidance.
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