FCA consults on CMC costs and fees

FCA is consulting on how it proposes to set fees to recover its costs for setting up the regulatory regime for claims management companies and for ongoing supervision of the sector. The consultation covers fees under the temporary permissions regime and the ultimate full permissions regime.  FCA plans to recover as many of its costs as early as it can, so that firms that proceed to full authorisation do not bear a disproportionately high amount of the costs.

It plans application fees of £1,200 for firms with turnover of up to £1m and £10,000 for larger firms, but plans one single fee block for periodic fees, regardless of the combination of claims management permissions the relevant firm holds.  There will be a minimum fee of £1,000 for turnover up to £100,000 with larger firms additionally paying a variable rate per £1,000 n the balance of their income.

It is also consulting on how to recover the costs associated with transferring complaints about CMCs to FOS and its ongoing costs. Again there will be a new fee block and, in principle. will pay the same case handling fees as all other firms on an ongoing basis, However, at present, there is no plan to include customers of CMCs within those eligible to claim under the FSCS.

FCA seeks comments by 22 October.