From April 2019, all CMCs set up or serving customers in England, Scotland and Wales will have to be authorised by the FCA to continue operating legally. Some claim managers, including CMCs that are incorporated in Scotland, and only serve Scottish customers, will be entering regulation for the first time.
CMCs have until the end of March to register for temporary permission. This will allow them to continue operating legally until they are fully FCA-authorised. If they don’t register with us before then they will not be able to continue operating. Firms should not leave it to the last minute to register to avoid potential problems or delays.
They will have to demonstrate they meet minimum standards to operate. Once registered, CMCs must comply with FCA standards and could face action if they don’t.
We published our rules that will apply to CMCs in Policy Statement PS18/23 in December. Firms should read this and get ready for regulation. They can register for their temporary permission and find out more about the process on our website.
Once registered for temporary permission, CMCs will need to submit their application for authorisation during one of two application periods between April and the end of July.
We aim to ensure CMCs are trusted providers of high quality, good value services that help customers pursue legitimate claims for redress and benefits the public interest.
Become a member of The Financial Analyst today. TFA publishes original opinion and news content on trending financial topics and breaking stories related to analysis and global markets. If you have a tip or a financial opinion to share get in touch to submit your story.