Shares in Lloyds Banking Group PLC (LSE:LLOY) fell over 2% after an update from the UK City watchdog on its motor finance review, but analysts said Close Brothers Group PLC (LSE:CBG) was more exposed.
The Financial Conduct Authority delayed the publishing of its 'next steps' from September to March next year and said a consumer redress scheme is "more likely than when we started the review".
Analysts at Peel Hunt note that "further uncertainty has been added" by Barclays' legal challenge to the Financial Ombudsman's decision to uphold a complaint related to the use of a discretionary commission arrangement.
If this challenge is allowed to proceed, the legal process would likely take place over the autumn period.
Peel Hunt added: "This appears negative for those firms involved in the FCA review, extending the period of uncertainty by a further eight months.
"In our view any full recovery in the share prices of affected companies is not likely until at least that point.
"We believe that investors already see a consumer redress scheme as probable but this would nonetheless be a negative outcome leading almost certainly to higher financial costs than if no redress scheme takes place."
Peel reckons Close Brothers has an "outsize exposure" to the issue and "is the most impacted in our view".
At the moment, analysts are forecasting a total charge for the FCA review of £185 million for Close, where management has indicated it might be able to strengthen capital resources by £400 million.
"Both numbers in our view remain subject to revision."
It sees Lloyds and Barclays as "exposed, but with a significantly lower level of materiality".