FCA Tightens Financial Firms' Cyber Attack Reporting
New FCA rules require clearer incident reporting from financial firms following surge in cyber attacks affecting car finance and insurance companies. Changes take effect March 2027.
The Financial Conduct Authority has confirmed new rules forcing financial firms to report cyber attacks and system outages more quickly and consistently, in a move that could better protect motorists using car finance and insurance services.
The FCA announced the changes will take effect on 18 March 2027, giving firms 12 months to prepare for stricter incident reporting requirements.
Over 40% of cyber incidents in 2025 involved third-party providers, highlighting vulnerabilities in the financial services that millions of UK drivers rely on for car loans, insurance, and payment processing.
The regulator cited recent high-profile outages including Cloudflare and AWS disruptions that have previously knocked out online services across multiple sectors, including automotive finance platforms.
What's Changed for Financial Firms
The new framework creates a single reporting portal shared between the FCA, Prudential Regulation Authority, and Bank of England. Most firms will complete a simplified short form when incidents occur, removing previous duplicate reporting requirements for payment service providers and credit rating agencies.
Mark Francis, director of specialists and wholesale sell-side at the FCA, said: "Resilience is being tested like never before, with firms facing growing cyber threats and increasing reliance on third parties to deliver the essential financial services consumers rely on."
The rules include clearer thresholds for what constitutes a reportable incident and guidance on responsibilities when third-party suppliers experience problems.
Impact on Car Finance and Insurance
For UK motorists, the changes could mean faster resolution when cyber attacks or system failures affect car finance applications, insurance claims processing, or payment systems. The FCA will use incident data to identify which services face the highest risk and spot potential critical third parties in the UK financial system.
Financial firms increasingly rely on cloud computing and third-party technology providers to process everything from PCP finance agreements to motor insurance claims. When these systems fail, drivers can face delays in loan approvals, insurance payouts, or even roadside assistance services.
The regulator plans to share industry insights and trends from the collected data, potentially helping firms strengthen their defences against future attacks.
Timeline and Implementation
Firms have until March 2027 to implement the new reporting systems. The FCA will host a webinar on 29 April 2026 for companies to ask questions about compliance requirements.
Two years after implementation, the regulator will review whether the system works effectively and delivers expected consumer protection outcomes.
The move reflects growing concern about cyber security in financial services, where a single attack can affect millions of customers across multiple sectors. For drivers, stronger incident reporting could mean better advance warning when their finance company or insurer faces system problems.
Consumers experiencing issues with financial services can contact the Financial Ombudsman if firms fail to handle complaints satisfactorily during system outages or cyber incidents.
