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Close Brothers have appointed Mike Morgan as their new group CEO following the resignation of Adrian Sainsbury, who stepped down after a period of medical leave. Sainsbury, who joined the firm in 2006 and became chief executive in 2020, resigned on 6 January.

Sainsbury, initially head of Close Brothers’ commercial division, later served as director of its banking subsidiary from 2013 before ascending to the CEO role. His medical leave began in September, described by the bank at the time as temporary. “He is recovering well and expected to make a full recovery,” the company said.

Close Brothers, along with other lenders, has been preparing for a possible industry-wide compensation bill of up to £30 billion. This comes as the UK Supreme Court is set to deliver a ruling on hidden commission arrangements in motor finance loans—a decision that could uphold a landmark judgment from a lower court.

Mike Biggs, chairman of Close Brothers, expressed confidence in Mr Morgan’s leadership, stating: “He brings deep knowledge of the organisation, and his appointment will ensure continuity in the leadership of the group and delivery of our strategy.”

Close Brothers and other motor finance companies have been allocating substantial reserves over the past year to cover potential compensation payouts, reflecting the sector’s heightened uncertainty ahead of the Supreme Court’s verdict.

Morgan’s appointment comes at a pivotal time for the bank, which operates in a sector grappling with legal and regulatory challenges that could reshape the industry.

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