You are here

Can the FCA take on claims management companies?

Though deemed not terribly effective following the 2008 banking scandals, the financial regulator could make life difficult for CMCs, says Stuart Bushell

3 November 2015

At the beginning of October, the Ministry ?of Justice (MoJ) announced it was considering moving the regulation of ?claims management companies (CMCs) from its own claims management regulation unit to the Financial Conduct Authority (FCA). Clearly, CMCs won’t figure high as far as Christmas card lists are concerned, but why the FCA and why now?

In the Summer Budget, Chancellor of the Exchequer George Osborne decided on a ‘major review’ of CMCs, together with a cap on the fees they are able to charge consumers. It is well known that the postbags ?of members of parliament are made heavier by the number ?of complaints they receive ?about nuisance calls from ?CMCs. The chancellor is also determined that insurance claims be stripped of ‘unnecessary costs from insurance premiums’ resulting from CMC activity. The Budget document is particularly concerned with consumer complaints which fall within ?the jurisdiction of the Financial Ombudsman Scheme (FOS)...

Want to read on?

This article is part of our subscription-based access. Please pick one of the options below to continue.

Already registered? Login to access premium content

SUBSCRIBE for one User

Unlimited access to the entire SJ website for a full year for one user.

  • 10 issues a year delivered to you
  • Digital edition of the magazine for one user – sent to your inbox or accessible through the website
  • Access to premium content on the website
  • Access to the fully searchable online archive of Solicitors Journal, Managing Partner and Private Client Adviser, which spans over 13 years
  • Weekly email newsletter with all the latest news, analysis and features
  • Comment on SJ content and contribute to the SJ community online
  • Advanced search feature
  • Online support
  • Access to SJ app compatible with Android and Apple devices – coming soon!
  • 6 special focuses per year
  • Special offers and discounts on Solicitors Journal and IICJ events

Subscribe

CORPORATE SUBSCRIPTION

Your department or entire firm can subscribe to Solicitors Journal online, providing easy access for all who require it. Discount corporate subscription rates apply, based on number of users.

The Corporate IP Licence includes:

  • Digital copy of the magazine sent to individuals’ inboxes and accessible through the website. Solicitors Journal publishes 10 issues per year
  • Unlimited access to premium content on the website based on IP addresses
  • Unlimited access to the fully searchable online archive of Solicitors Journal, Managing Partner and Private Client Adviser, which spans over 13 years
  • Weekly email newsletter with all the latest news, analysis and features
  • Comment on SJ content and contribute to the SJ community online (username required)
  • Unlimited access to SJ app compatible with Android and Apple devices
  • 6 special focuses per year
  • Special offers and discounts on Solicitors Journal and IICJ events

The Corporate IP Licence is tailored to your firm, making it the most cost effective way for the firm to access Solicitors Journal, and enables the firm to remain compliant with copyright and our Terms and Conditions. This gives you the ability to print and circulate articles within the firm.

To enquire about a Corporate IP Licence for your firm, please contact our Subscriptions Manager on emily.beechey@solicitorsjournal.com.