FIN.

FCA regulation of CMCs starts

1 April saw the start of FCA regulation of claims management companies. Over 900 companies have registered with FCA for temporary permission, without which they cannot operate until fully authorised.

FCA will have the possibility of using its usual supervisory and enforcement toolkit against CMCs and has set specific new requirements that CMCs must follow, not least that customers must be given clear, upfront information about the services the CMC proposes to provide and the free alternatives. FCA has also put in place rules to guard against pressure sales and to prevent firms encouraging claims that are fraudulent or have no good basis.

Avatar

Emma Radmore